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					                             TURKISH PRESS
                            AND OTHER MEDIA


No. 206/08                                                       28-29.10.08
A. NEWS ITEMS
1. Talat admits that he is fully depended on Turkey
2. The Turkish Cypriot leader, Mehmet Ali Talat informed the Turkish
Cypriot political parties about the latest developments regarding the
negotiations
3. Hasan Ercakica criticized the “Greek Cypriot Administration” for its
attempts to prevent the meeting between the Turkish Cypriot leader
Talat and the Australian Foreign Minister Stephen Smith.
4. A message by the so-called Turkish Ambassador of Turkey to
occupied Lefkosia: “Turkey believes that a lasting and fair solution to
the Cyprus problem is possible only if the realities in Cyprus are taken
into consideration”
5. Turgay Avci, chairman of the Freedom and Reform Party (ORP)
criticized Archbishop Chrysostomos for his statement that “the crossing
points between North and South Cyprus should be closed down”
6. A foreign cruise ship carrying the flag of Bahamas has entered the
occupied port of Keryneia
7. World Poker Tour holds tournaments in the occupied areas while
casinos contribute to the “lifting of isolation over the TRNC”
8. Illegal YDU possesses a supercomputer
9. Chairman of the Australian Turkish Business Council proposed that
the occupation regime open an official representation in Australia
10. The youth branch of CTP will go to Ukraine in order to participate in
the “Central Europe Youth Cooperation Conference”
11. “’Economic strategy is being prepared’”
                                        2


12. The Turkish Lira will substitute the New Turkish Lira as of 1st
January, 2009; Statements by the Director of the Turkish Central Bank
and Ferdi Sabit Soyer
13. The “Association of the Turkish Cypriot Football Coaches”
participated in 29th symposium of the European Union of Coaches which
was organized in Frankfurt
14. A Turkish Cypriot became “FIFA players’ agent” after succeeding in
CFA’s exams
15. Luncheon in honor of Babacan from the French ambassador to
Ankara
16. Davutoglu addresses think tank in Washington
17. Erdogan to visit Washington and New York for the G-20 summit


B. COMMENTARIES, EDITORIALS AND ANALYSIS
1. From the Turkish Press of 27 and 28 October


A. NEWS ITEMS
1. Talat admits that he is fully depended on Turkey
Under the title “I am hopeful, despite the negativeness” Turkish Cypriot daily
Yeni Duzen newspaper (29.10.08) publishes statements of the Turkish Cypriot
leader, Mehmet Ali Talat who said that despite the negativeness experienced
in the negotiations, he is still hopeful and that he believes that opposite him
there is a Greek Cypriot leader who cannot escape from the solution. Mr
Talat, who made these statements speaking at a television program of the
Kanal T television station, also stated that without the support of Turkey this
process would not have started and that Mr Christofias would not have
participated in a process like the Camp David.


Replying to questions about the negotiations, Mr Talat stated, inter alia, that it
is not realistic for a process which would have the dimensions of Camp David
to take place, and added that Mr Christofias would not have participated in a
                                        3


meeting like Camp David. Noting that the negotiations are a “give and take”
process he stated that he made a give and take proposal to the Greek
Cypriots and he is waiting for a reply. He said that if there is no agreement in
one subject, there is no agreement in any subject.


On the system of administration, Mr Talat stated that they have proposed the
establishment of a “presidential council”.


Mr Talat stated also that the political structure in the Greek Cypriot side is
different than in the “TRNC”, and added that the Greek Cypriots accept a thing
and after a while they abandon it, according to their interests. He said that this
is seen quite often.
He said that there is a big difference between him and Mr Christofias. He
wanted sincerely the solution, but, as regards Christofias, he wanted the
solution in the election campaign. He said that he is willing to participate in a
Camp David process, but the Greek Cypriots are not, and that they have said
so.


Referring to Turkey, Mr Talat stated that if Turkey has not supported this
process, the negotiations would not have started. However, he said that this
does not mean that the rope is in the hands of Turkey. “If Turkey did not
support the process, and if there was no international bond, why would the
Turkish Cypriots, who are isolated, sit at the negotiation table with trust?”, he
asked.


Replying to a question on whether he would sit at the negotiation table, if
Turkey said that the conditions are not appropriate for the negotiations and
told him not to sit at the table, Mr Talat stated: “How could I sit? If Ankara
secures my relations with the world, my standing on my feet economically, if
Ankara secures my relations with the world, if no one can call here without
dealing the Turkish code 0090, if you cannot write a letter without writing
                                        4


“Mersin, Turkey”. Are all these realities that can be ignored? These are known
realities”, he stated and added: “If a country that safeguards all these for us
says „no my brother, you will not sit, if you sit I will not safeguard any of these
for you‟, then what is going to happen to you? Then you disappear, you are
wiped up. Apart form this, I have support in this process. If you face various
distresses in the negotiation process, one must support you at this process”,
he stated.


Mr Talat also stated that it seems that the Greek Cypriots also accept the
solution to take place until June 2009 and added that despite the
negativeness experienced in the negotiations, he is still hopeful.
(CS)


2. The Turkish Cypriot leader, Mehmet Ali Talat informed the Turkish
Cypriot political parties about the latest developments regarding the
negotiations
Turkish Cypriot daily Kibris newspaper (29.10.08) writes that the Turkish
Cypriot leader, Mehmet Ali Talat held a meeting yesterday with the
representatives from political parties represented in the “assembly” aiming to
inform and exchange views on the latest developments regarding the
negotiations process and on the issues discussed during the latest meeting of
the two leaders on October 22. The representatives of the Turkish Cypriot
political parties made separate statements at the end of the meeting which
lasted for nearly two hours.


The self-styled Prime Minister and leader of the ruling Republican Turkish
Party, Mr. Ferdi Sabit Soyer has said that Talat continues the negotiations
process with determination towards carrying it through. He then reiterated that
their major goal is to reach a lasting and mutually acceptable solution. “The
Turkish Cypriot side is a side of a possible solution and those who want to
contribute to a solution should avoid supporting the Greek Cypriot side‟s
                                        5


approach towards the non-solution”, Soyer added. Touching upon the matter
of the efforts exerted by the Greek Cypriot side for preventing the meeting
between Talat and the Australian Foreign Minister, Mr. Soyer said that “this is
wrong”.


Meanwhile, the “Deputy Prime Minister, Foreign Minister” and leader of the
Freedom and Reform Party Turgay Avci said that the demands of the Greek
Cypriots   presented    during    the   negotiations   are   unacceptable.


He said that the “Greek Cypriot Administration” still is not able to agree on the
fact that a solution is possible only in case that it will foresee that Turkish
Cypriots have equal rights with the Greek Cypriots.


Nazim Cavusoglu, General Secretary of the National Unity Party stated that
almost everyone is coming to realize the fact that the major problem does not
lie in the details, but in the vision. Mr. Cavusoglu said that the biggest problem
will still be on the table unless the Greek Cypriot side starts seeing Turkish
Cypriots as equal partners.


Meltem Onurkan Samani, the General –Secretary of the Social Democracy
Party stressed that an early solution of the Cyprus problem will be beneficial
for all sides. Pointing to some difficulties faced during the negotiations
process, she underlined the need for maintaining the process with a higher
speed during which the two sides will both give more sincere messages.


Mr. Serdar Denktas, chairman of the Democratic Party has said that they
reject the proposal of the Greek Cypriot side for a common ballot during the
elections. He then criticized the Greek Cypriot side for its attitude towards the
matter of the meeting between Talat and Smith.
(A.K.)
                                       6


3. Hasan Ercakica criticized the “Greek Cypriot Administration” for its
attempts to prevent the meeting between the Turkish Cypriot leader
Talat and the Australian Foreign Minister Stephen Smith.
Turkish Cypriot Kibris newspaper (29.10.08) in its front page under the title
“The negotiation process is harmed” reports on the statements of Mr. Hasan
Ercakica, the spokesman of the Turkish Cypriot leader Mehmet Ali Talat who
accused the “Greek Cypriot administration” for its attempts to prevent the
meeting between the Turkish Cypriot leader and the Australian Foreign
Minister Stephen Smith. Speaking during his weekly press briefing, Mr.
Ercakica said that this kind of attempts harm seriously the negotiation
process. He then added that the Turkish Cypriot leader met yesterday
morning with the Australian Special Representative for Cyprus, Ambassador
David Ritchie and he explained to him his thoughts about the Cyprus problem
as well as his disturbance for the exerting of efforts by the Greek Cypriot side
to prevent his meeting with the Australian Foreign Minister Stephen Smith.


Mr. Ercakica also informed that the “President‟s Special Advisor for
Negotiations” Ozdil Nami had the opportunity to meet Smith and explain to
him the Turkish Cypriot stance, during an event held last night.


During his statements, Mr. Ercakica has stated also that the Turkish Cypriot
leader met yesterday with the Turkish Cypriot political parties which are
represented in the “assembly” in order to inform them and evaluate the
proposals that the Turkish Cypriot side put on the negotiation table for
discussion.


In his weekly press briefing, Mr. Hasan Ercakica stressed that the Turkish
Cypriot side is very much disturbed to see that whatever discussed during
negotiations between the two leaders are still being leaked to the Greek
Cypriot press. He said that the issue will be brought to the attention of Greek
Cypriot officials during the next Talat-Christofias meeting which is scheduled
                                        7


to take place on 3rd November and some proposals might also be presented
to them.


Pointing out that the Greek Cypriot side had made a proposal on the
executive body during last Talat-Christofias meeting, Ercakica said that the
Turkish Cypriot side continues working on its responding proposal which is
planned to be presented during next meeting.


Ercakica also stated that the Turkish Cypriot leader is planning to visit Istanbul
on Thursday in order to participate in the Global Economic Forum and in the
dinner that the Turkish Prime Minister Erdogan will give in honor of the
leaders and the businessmen who are participating in the forum.
(A.K.)


4. A message by the so-called Turkish Ambassador of Turkey to
occupied Lefkosia:” Turkey believes that a lasting and fair solution to
the Cyprus problem is possible only if the realities in Cyprus are taken
into consideration”
Turkish Cypriot daily Kibris newspaper (29.10.08) in its front page under the
title “A realistic solution” reports on the statements made yesterday by the so-
called Turkish Ambassador to occupied Lefkosia, Mr. Turkekul Kurttekin in the
framework of the celebrations which took place yesterday in the occupied
areas for the 85th anniversary of the establishment of the Turkish Republic. In
his address through the illegal Bayrak radio station, the “Turkish Ambassador”
said that the Turkish Republic was proud and happy to be celebrating its 85th
anniversary of establishment. He also evaluated the Cyprus problem and said
that Turkey believes that a lasting and fair solution to the Cyprus problem is
possible only if the realities in Cyprus are taken into consideration. He
reiterated once more that Turkish Cypriots have equal rights in the island with
the Greek Cypriots. He also said that the Turkish Cypriot side was ready for a
new partnership state in Cyprus by adding that the Turkish Cypriot people had
                                       8


demonstrated this when they approved the Annan Plan in 2004. He said also
that it was disappointing to note that the Turkish Cypriots continued to be
subjected to international isolation and embargoes despite the fact that it was
the Greek Cypriot side which had rejected a solution.


Expressing Turkey‟s determination not to allow Turkish Cypriots to return to
conditions prior to 1974, the Turkish Ambassador said that his country will
continue to support a just and lasting comprehensive solution to the Cyprus
problem.


Meanwhile the paper reports on the messages issued by the leaders of the
biggest political parties in the occupied areas for the 85 th anniversary of the
establishment of the Republic of Turkey.
(A.K.)


5. Turgay Avci, chairman of the Freedom and Reform Party (ORP)
criticized Archbishop Chrysostomos for his statement that “the crossing
points between North and South Cyprus should be closed down”
Turkish Cypriot daily Kibris newspaper (29.10.08) reports that the chairman of
the Freedom and Reform Party (ORP), Mr. Turgay Avci in a written statement
yesterday, expressed his reaction to the latest statements of Archbishop
Chrysostomos published in the Greek Cypriot press, who reportedly said that
“the crossing points between North and South Cyprus should be closed
down”. Evaluating Archbishop Chrysostomos´ statements, Mr. Avci said that
these statements are unacceptable and added that they show the real face of
the Greek Cypriot side. Avci also said that the stance of the church to interfere
in politics, reminds him of the policies of Makarios period, a period which was
very painful for the Turkish Cypriots. Avci added also that this kind of
statements harm the positive atmosphere of the negotiation process.
(A.K.)
                                      9


6. A foreign cruise ship carrying the flag of Bahamas has entered the
occupied port of Keryneia
Turkish daily Yeni Duzen newspaper (28.10.08) reports that for the first time a
cruise liner carrying 110 tourists, most being British, pierced the “embargoes”
and anchored off the coast of Keryneia yesterday.


According to the paper, this was the first time in the “TRNC” history that a
foreign cruise ship brought tourists to the “TRNC”. The ship which is carrying
the flag of Bahamas has entered the occupied areas of Cyprus yesterday
morning at 10.00 with the agency of “Keryneia Holidays” and is planning to
stay in the occupied areas for one day. The paper writes that the ship which
departed from the South shores of Turkey is planning to make the tour of the
Mediterranean Sea. The ship will depart from the occupied areas for Egypt at
18.00.
According to the statements made by the self-styled Minister of Economy and
Tourism and the director of “Keryneia Holidays” Tamer Konat, a total number
of 110 tourists from England, Australia, Germany and Europe visited the
island with this tour.


The tourist convoy was welcomed with a dance show performed by the
occupied [Keryneia] Municipality‟s folk-dancing group and flowers were also
given as part of the special greeting event. The paper writes also that the
convoy then had a tour around the historic sites of occupied Keryneia.


Meanwhile Turkish Cypriot daily Kibris newspaper (29.10.08) reports on the
same matter and writes that it is the first time after 34 years that an
international ship is entering into a part of the “TRNC”. The 90 meters long
ship of the category “Pocket Cruise Passengers Ship” arrived in the occupied
areas after departing from Istanbul and Alanya. The paper also writes that the
tourist group which consisted of tourists from England, Germany and the USA
entered the occupied areas after making the necessary formalities. The paper
                                       10


writes that the director of “Keryneia holidays” firm has stated that they had
been planning this historic event 6 months before and added that this finally
ended with a great success. He then said that they tried to keep this event
secret in order to avoid any obstacles and in the end he expressed his
happiness for this historic event.


Moreover, Kibris newspaper (29.10.08) reports that the self-styled Minister of
Economy and Tourism, Mr. Erdogan Sanlidag met yesterday with Mr. Tamer
Konat, director of the Tourist firm “Keryneia Holidays” which brought tourists
to the occupied areas the day before yesterday with a ship having the flag of
Bahamas.     According to a statement issued by the so-called Ministry of
Economy and Tourism, Mr. Sanlidag has said that the number of tourists
visiting the occupied areas is increasing year by year and added that they are
very near to reach to their goal. He then expressed his pleasure for this and
added that the so-called Ministry of Economy and Tourism has taken serious
initiatives to introduce and promote the tourism of the occupied areas to a lot
of markets apart from the Turkish. Referring to the forthcoming tourists fairs
which will be held in England and Izmir, Mr. Sanlidag has said that they are
continuing their efforts so that they could represent the tourist sector of the
occupied areas with success.
(A.K.)


7. World Poker Tour holds tournaments in the occupied areas while
casinos contribute to the “lifting of isolation over the TRNC”
Under the title “The TRNC overcomes the international isolation with poker
tournaments”, Turkish daily Hurriyet newspaper (29.10.08) publishes a report
by Demet Cengiz Bilgin, according to which the occupation regime overcomes
through casinos its so-called isolation.


According to the report, casino lovers coming mainly from Turkey, Greece,
Italy, Israel, Norway, Russia and Syria visit the occupation regime in order to
                                       11


be entertained in the illegal casinos established there. In addition, the fame of
the casinos in the occupied areas is increasing by organizing the Texas
Holdem Poker tournament which is an important gathering of the world.


Moreover, the Grand Casinos Club which owns three casinos in the occupied
areas of the Republic of Cyprus, has sent an invitation for participation in the
tournament which will be organized between 8-9 November to the global giant
organization World Poker Tour (WPT) which arranges the Texas Holdem
Poker tournaments. In case Cyprus gets the permission from the WPT,
Cyprus will enter into the programme of WPT and become one of the legs of
the Texas Holdem Poker.


Noting that a total prize of $120,000 was given during the Texas Holdem
tournament which has been organized for the first time in June with the
participation of 130 persons, Mr. Aydogan Turay, General Manager of the
Grand Casinos Club which is one of the companies of the Net Holding group
which also owns the Merit, Mercury and Salamis Bay casinos in the occupied
areas, has stated:
“We held the second tournament in August with a 160-person participation
and a prize of $263,000 was given. In that tournament representatives from
WPT were also present. They have been very pleased with us. We were
thinking that we would have deficiencies, yet they said that we are efficient”.


Reminding that a great number of participants from Norway, Iran, Russia and
Britain participated in the August tournament, Aydogan Turay noted that the
team of Norway has extended for eight more days its stay in the occupied
areas due to the admired beauties of the island, while he further pointed that
“thanks to the Texas Holdem, the TRNC is overcoming the isolation.”


Mr. Turay, stressing that this will be the third Texas Holdem Poker tournament
organized, noted that they are about to reach to an agreement with WPT.
                                        12


“The representatives from the [WPT] organization that came have been very
pleased with the August tournament. It will be very important for the TRNC if
this agreement is reached. We want to make Cyprus the greatest WPT
tournament. The materialization of this means that the TRNC will be watched
by the whole world through television”.


He stressed that the casinos in the occupied territories of the Republic are
operating since 1977, while in the free areas of the Republic there are no
casinos, “the only country in the EU without casinos being the Greek Cypriot
sector”. Mr. Turay further said that the “name of the TRNC” has become an
important casino destination, while 30% of their customers during the
weekends are Greek Cypriots. This number can reach 90% with the new hotel
and casino in occupied Lefkosia. Concluding he said that a number of people
is also coming from Greece in order to visit the casinos in the occupied areas.
In addition and under the subtitle “Casinos are paying tax as much as the total
imports of the island”, the report gives details on the tax the casinos in the
occupied areas of the Republic of Cyprus are paying. According to the report,
in 2007, the casinos in occupied Cyprus paid $75 million as tax, while it is
estimated that casinos are creating a direct and indirect economy of $500
millions. The imports of the illegal regime reach a total of $1.5 billion, while the
exports reach $80 million at the time when the casinos pay as tax $75 million,
the report concludes.


[Tr. Note: The World Poker Tour is a series of international poker tournaments
featuring most of the world's professional players.]
(ML)


8. Illegal YDU possesses a supercomputer
Turkish Cypriot professor Dr Ata Atun, writing in his daily column “The Cyprus
Triangle” in Turkish Cypriot daily HALKIN SESI newspaper (27.10.08), refers
to information acquired by the founding Rector of the illegal Near East
                                        13


University (YDU) Dr Suat Gunsel and says that the only super-computer on
the island of Cyprus is located in the occupied areas at the “YDU” renovation
centre.


Under the title “The disappointment of the Greek Cypriots on the super-
computers”, Dr Atun writes that only few universities in the world possess
such computers and that illegal YDU innovation centre has officially
participated in the EGEE, EUMED and Black Sea-Net projects launched by
the EU. This fact, argues Dr Atun, made the Greek Cypriots angry. He says
that the Greek Cypriots got into action after that and tried to prevent the illegal
YDU from participating in the EU projects, but they were not successful in
their efforts. The Commission of the EU, notes Dr Atun, refused mixing
science with politics. He alleges that when the Greek Cypriots tried something
else and asked for money from the Commission to buy their own super
computer, the Commission replied in writing that it cannot give money to the
Greek Cypriots for a super-computer and told them to go to the occupied
areas and use the one located at the innovation centre of the illegal YDU.
(ITs)


9. Chairman of the Australian Turkish Business Council proposed that
the occupation regime open an official representation in Australia
Turkish Cypriot daily Kibris newspaper (28.10.08) reports that the so-called
deputy prime minister and foreign affairs minister Turgay Avci met yesterday
with the Chairman of the Australian Turkish Business Council Huseyin
Mustafa, who is currently in the occupied areas of the Republic of Cyprus to
hold various contacts.


According to a press release issued by the so-called foreign affairs ministry,
Mr Mustafa said that the visit of the so-called foreign minister Turgay Avci to
Australia last February was extremely important and productive, adding that
the Turkish Cypriot community of Australia, was very satisfied from Avci‟s
                                          14


visit. Mr Mustafa said also: “We see ourselves, since the old times, as a
community not belonging anywhere and that no one gives us attention. The
minister‟s visit made us feel that we belong to somewhere and we are being
considered important.”


Mr Mustafa said that the occupation regime must open an official
representation in Australia and added that it is really important from the view
of political power and that the 60,000 Turkish Cypriots, who live in this country
to be represented at an official level.


Huseyin    Mustafa    is   also   West    Australia   General   Director   of   the
“Commonwealth Bank of Australia”, which is the biggest bank in the country at
the moment.
(DPs)


10. The youth branch of CTP will go to Ukraine in order to participate in
the “Central Europe Youth Cooperation Conference”
Turkish Cypriot daily Star Kibris newspaper (29.10.08) writes that the youth
branch of the Republican Turkish Party (CTP) will go to Ukraine in order to
participate in the “Central Europe Youth Cooperation Conference”.


According to a statement of the CTP Youth Branch, in the conference youth
leaders of countries who are members of the European Union as well as state
and civil society organizations from Ukraine will participate in the conference.
On behalf of the CTP, the chairman of the youth branch, Erbay Akansoy and
the Foreign Relations Secretary, Cetin Erbas will participate in the conference.
They will leave occupied Cyprus on the 2nd of November.
(CS)
                                       15


11. “’Economic strategy is being prepared’”
Under the above-title Turkish Cypriot daily Halkin Sesi newspaper (28.10.08)
reports that Erdogan Sanlidag, self-styled minister of economy and tourism,
presided over an extraordinary meeting last night regarding the measures that
should be taken for overcoming the economic crisis experienced in the
occupied areas of Cyprus.


According to the paper, taking under close observation the countries to which
the breakaway regime exports goods and examining the sources of the
financial difficulties experienced in the real sector and the basic reasons of the
crisis in the private sector were among the topics of the meeting which took
place at the self-styled ministry of economy and finance.


Mr Sanlidag gave instructions for establishing the real difference between the
prices in the occupied areas and the free areas of the Republic of Cyprus and
said that measures will be taken as soon as possible for all sectors which are
facing crisis and added that they are in close cooperation with Turkey on this
issue. Mr Sanlidag stated that Turkey is always by the side of the Turkish
Cypriots.


Noting that they are aware of the existing economic crisis and they are
carrying out a “very serious work”, Mr Sanlidag argued: “What I am asking
from our investors is not to be disappointed in any manner and not quit their
struggle. As ministry of Economy and Tourism, together with my team we are
preparing a strategic plan and very soon we shall submit it to the council of
Ministers”.


He noted that during the recent ISEDAK meeting in Turkey, they evaluated
not only tourism, but the economy as well and added that the economic crisis
in the occupied areas is a result of the indirect influence from Turkey.
                                       16


Pointing out to their duty of preparing projects for reviving the real sector and
increasing and strengthening the exports, Mr Sanlidag said that the Turkish
State Minister Tuzmen noted that they will provide the necessary aid to the
occupied areas and that president Gul expressed his support in his speech.
He added that all these show that Turkey will support them, but at the same
time he underlined that they are obliged to develop a policy so that they are
able to stand on their own feet.
(I/Ts.)


12. The Turkish Lira will substitute the New Turkish Lira as of 1 st
January, 2009; Statements by the Director of the Turkish Central Bank
and Ferdi Sabit Soyer
Turkish Cypriot daily Halkin Sesi newspaper (28.10.08) reports that a meeting
has been organized at the illegal “Near East University” regarding the second
stage of the Monetary Reform which will start on 1 January 2009 in Turkey
and the occupied areas of Cyprus.


On the above-mentioned date both in Turkey and the occupied areas the New
Turkish Lira will be substituted by the Turkish Lira. The Director of the Turkish
Central Bank, Durmus Yilmaz, the slef-styled prime minister Fardi Sabit Soyer
and the self-styled ambassador of Turkey to the occupied part of Nicosia,
Turkekul Kurtekin were among the participants in the meeting, that took place
on Monday.


The paper reports that Mr Durmus called on the people to carry out their
transactions with Turkish Liras, when this is possible, and refrain from taking
loans in foreign exchange. “Let those who do not have any income in foreign
exchange not carry out any transactions with foreign exchange, let them carry
out their transactions with Turkish Liras”, he said. Replying to questions after
the meeting, Mr Durmus noted that at this stage Turkey needs no money from
the International Monetary Fund (IMF).
                                       17



He said: “We are facing a serious problem of liquidity in dollars at this
moment. Some measures should definitely be taken in order for this problem
to be overcome. At this stage, as Republic of Turkey we have no need of the
IMF money, but uncertainties exist on the issue of what we will be facing in
the future. Therefore, we consider making some arrangements to be useful
from the point of view of being able to give trust to the international markets in
any manner. However, as regards the result, this is a political decision. It is up
to the government”.


In his statements, Mr Soyer described the monetary reform and the
substitution of the New Turkish Lira by the Turkish Lira, as a “tremendous
operation” and noted that the meeting was important. He also referred to the
global economic crisis and said that the measures taken by Turkey and the
breakaway regime have an important advantage from the point of view of the
financial markets and the financial sector.
(I/Ts.)


13. The “Association of the Turkish Cypriot Football Coaches”
participated in 29th symposium of the European Union of Coaches which
was organized in Frankfurt
Turkish Cypriot daily Ortam newspaper (29.10.08) in its sport pages writes
that a delegation from the “Association of the Turkish Cypriot Football
coaches” participated in the 29th symposium of the European Union of
Coaches which is taking place in Germany, Frankfurt. According to the paper,
the symposium started last Saturday with the participation of 200 coaches
from 59 countries. The pseudostate is represented by the young coaches
Toygar Davulcu and Muharrem Mert, and two of the members of the
“Association of the Turkish Cypriot Football coaches”.
(A.K.)
                                      18


14. A Turkish Cypriot became “FIFA players’ agent” after succeeding in
CFA’s exams
Turkish Cypriot daily Kibris newspaper (28.10.08) reports that a Turkish
Cypriot named Tekin Birinci has acquired a license of becoming “FIFA
players‟ agent” after succeeding in an exam organized by the Cyprus Football
Association (CFA). Mr Tekin Birinci has not been accepted in the exam
organized in Turkey because he is not a Turkish citizen.


After the exam, Mr Birinci agreed with a management company in Britain
named Asinternationale and in November he is expected to sign an
agreement with this company. The company has given Mr Birinci the right to
represent football players in the occupied and the free areas of Cyprus as well
as in Russia.
(I/Ts.)


15. Luncheon in honor of Babacan from the French ambassador to
Ankara
Ankara Anatolia news agency (28.10.08) reported the following from Ankara:
“French Ambassador in Ankara Bernard Emie hosted a luncheon in honour of
Turkish Foreign Minister Ali Babacan in Ankara on Tuesday.


The luncheon was attended by several EU countries' ambassadors in the
capital.


Diplomatic officials quoted Babacan as saying that Turkey was ready to open
several chapters in its EU negotiation process, but the country was concerned
that these chapters have not been opened yet.


EU ambassadors congratulated Babacan on Turkey's election for a non-
permanent seat in the United Nations (UN) Security Council. Babacan
thanked them for their support to Turkey in this process.
                                          19



Babacan informed EU ambassadors on his visit to Afghanistan as well as the
Turkish International Cooperation and Development Agency's (TIKA) activities
in Afghanistan in the meeting.


Replying to a question on the national program of Turkey, Babacan said they
were working on the program very hard.


Answering a question on the global financial crisis, Babacan said significant
reforms have been fulfilled in the economy in Turkey which has a sound
economy.”


16. Davutoglu addresses think tank in Washington
Ankara Anatolia news agency (28.10.08) reported the following from
Washington D.C.:
“A Turkish adviser said on Tuesday that Turkish-U.S. relations would be a
success story.


Ahmet Davutoglu, the chief foreign policy adviser to Turkey's Prime Minister
Recep Tayyip Erdogan, said that the new era with the United States would be
a success story whoever was elected the new president of that country.


"The new president of the United States will be Turkey's best friend,"
Davutoglu said during a meeting on "Turkey, the region and U.S.-Turkey
relations: Assessing the challenges and prospects" at the Brookings Institution
in Washington D.C.


On Turkey's relations with Armenia, Davutoglu said that Turkey was ready to
discuss   negative    problems      and   two   countries   should   seize   recent
opportunities in their relations.
                                       20



Davutoglu expressed his expectation that the Armenian diaspora should
support the process between Turkey and Armenia, and said this new process
had not caused concerns in Azerbaijan and relations among Turkey, Armenia
and Azerbaijan would go on synchronously.


The adviser said that there was need for courage and creativity to solve the
Upper Karabakh dispute, and no one could wait for 20-30 years more to
resolve the issue.


Davutoglu said that all frozen clashes were occurring in the geography where
Turkey was situated, and said the real problem was how a new world order
could be established.


The Turkish adviser said that a new economic order should be established
and the world needed a new global order.


‟Nobody should perceive different cultures as a threat. This is the wealth of
the entire world and humanity,‟ he said.
Davutoglu said the main principle of Turkish foreign policy was to establish a
balance between security and freedom, and told the gathering that one should
not be sacrificed for the other.


‟Security means NATO for Turkey, and freedom means the democratization
process in the EU,‟ the adviser also said.


Talking about Turkey's relations with its neighbors, Davutoglu said Turkey had
managed to have zero problems with its neighbors and told the participants of
the meeting that Turkey had good relations with Greece, Bulgaria, Georgia
and Syria.
                                            21



Davutoglu said that Turkey had established a strong relationship with Iran,
and also said that Turkey had made progress in its relations with Armenia and
in the settlement of the Cyprus issue.


The Brookings Institution and SETA Foundation for Political, Economic and
Social Research will host a conference to examine Turkey's domestic and
foreign policy challenges and prospects.


After the keynote address by Ahmet Davutoglu, Ibrahim Kalin, founding
director of SETA; Nonresident Fellow Omer Taspinar, director of the Turkey
Project at Brookings; Visiting Fellow Mark Parris, former U.S. ambassador to
Turkey; and Talha Kose of George Mason University are expected to
moderate a series of discussions featuring a distinguished group of Turkish
and American experts, officials and scholars.


The Brookings Institution is a nonprofit public policy organization based in
Washington D.C. Its mission is to conduct high-quality, independent research
and,   based    on       that   research,        to   provide   innovative,   practical
recommendations that advance three broad goals: Strengthen American
democracy; foster the economic and social welfare, security and opportunity
of all Americans and secure a more open, safe, prosperous and cooperative
international system.”


17. Erdogan to visit Washington and New York for the G-20 summit
Today‟s Zaman newspaper (29.10.08) reports that Prime Minister Recep
Tayyip Erdogan is expected to travel to the United States next month to attend
a financial summit of the Group of 20 (G-20) countries called by US President
George W. Bush. Following calls from European leaders, including British
Prime Minister Gordon Brown and French President Nicolas Sarkozy, the
White House announced earlier this month it was planning a meeting of the
                                        22


heads of state from the G-20 countries in Washington on Nov. 15, 11 days
after the US presidential election.


The G-20 members include some of the countries most affected by the crisis
in the developed world as well as emerging markets. The question of reform
of existing regulatory regimes will top the agenda of the summit. The
members of the G-20 are Argentina, Australia, Brazil, Britain, Canada, China,
France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi
Arabia, South Africa, South Korea, Turkey, the United States and the
European Union. Meanwhile, Erdogan's first stop in the United States will be
New York, where he will host a reception for Turkey's recent election as a
non-permanent member of the UN Security Council.


B. COMMENTARIES, EDITIORIALS AND ANALYSIS
1. From the Turkish Press of 27 and 28 October
Following are the summaries of reports and commentaries of selected items
from the Turkish press of 27 and 28 October:
a) Economy
If the real sector has economic difficulties, the banking system will also be
affected by them, says Erdal Saglam in an article in Hurriyet (27.10.08). Citing
an article by Emin Akcakoca, former chairman of the Banking Regulation and
Supervision Agency, featured by Referans as saying that it has become more
difficult for companies to receive loans from banks due to the global economic
crisis, Saglam explains that according to Akcakoca it is necessary to establish
a "preventive fund" or to redesign the "Istanbul Approach" that had been
applied in the past. Otherwise, Akcakoca believes that it will be necessary to
establish a fund for rescuing the banks, explains Saglam.


The IMF has reportedly begun to work on a plan that aims to introduce swap
facilities to developing countries, notes Ercan Kumcu in a commentary in
Hurriyet (27.10.08) and stresses that this will not be sufficient for resolving the
                                        23


economic problems of counties such as Brazil, Argentine, Russia, Romania,
Hungary, and Bulgaria. Noting that following the crisis it will be necessary to
use the resources of the IMF in more important areas, Kumcu says: "Even if it
is currently appropriate to use the IMF resources for resolving the problems
associated with the loan crisis in the international markets, the central banks
will have to take action against in the future. Under the current circumstances
the main problem faced by the developing countries is not economic strength
or weakness, but the gradual opening of loan channels and loan channels can
only be opened by central banks."


In an article in Milliyet (27.10.08), Yaman Toruner lists the urgent measures
that should be taken by the Turkish Central Bank in the face of the global
economic crisis. Noting that the rise in the currency rates had been expected,
Toruner calls on the Central Bank not to panic in the face of this development
and to correctly calculate the real value of the Turkish lira.


Referring to Erdogan's statement on a possible agreement with the IMF, in
Vatan (27.10.08) Mehmet Tezkan, in an article, compares the current crisis
with the 2001 crisis and notes: "A lot of money had been transferred to Turkey
as of 2002. We are talking about hot money, cold money, and investments.
Currently the transfers have stopped. The United States is shaking, Europe is
shaking. Someone from the government should explain this to the prime
minister. Of course, if there is such a person!"


Kemal Dervis has warned that economic slow-down will be inevitable in
developing countries due to the fact that there are fragilities stemming from
the real sector and the current deficit, notes Erol Cevikce in an article in Vatan
(27.10.08) and calls on the government to take measures similar to those
taken in the United States and Britain with the aim of protecting production
and employment. Recalling Finance Minister Kemal Unakitan's call on the
                                          24


banks to avoid pressuring the industrialists, Cevikce underlines that this call
will be meaningless if the necessary legal arrangements are not made.


The government has two options in the economy, says Ugur Gurses in an
article in Radikal (27.10.08), adding: "It will either accept the reality foreseen
in the short and middle runs or it will act as if nothing has happened. The
approach adopted by the government in the budget and in the economic
assumptions and targets that constitute the infrastructure of the budget gives
the signs of the second option. We believe that this option has been chosen in
order to maintain the morale of the economic units." Rather than taking
measures in the face of the crisis, we have begun to make mistakes in crisis
management, underlines Gurses.


A unattributed report in Cumhuriyet (27.10.08) notes that Turkey will have to
pay $11.5 billion in foreign debt in 2009. Drawing attention to the drop in
production, the report underlines that the industrialists are very concerned
with the course of the economy in Turkey.


According to a report in the Turkish Daily News (27.10.08), Erdogan, referring
to a possible agreement with the IMF, says: "In this crisis period we will not
bury the future into the darkness by bowing to the demands of the IMF."
A report in the Turkish Daily News (27.10.08) cites Energy Minister Hilmi
Guler as saying that Turkey will begin to invest in renewable energy.
Under the headline, "Low interest rates and cheap gas would alleviate the
crisis," Yeni Safak (27.10.08) publishes a front-page report which highlights a
proposal by Turkish "real sector representatives" that the Central Bank lower
interest rates and that energy costs be reduced so that the effects of the
global financial crisis could be eased.


According to a report by Sefa Karahasan in Milliyet (28.10.08), Central Bank
Governor Durmus Yilmaz has expressed concern over a "serious dollar
                                      25


liquidity problem," stressing that measures are needed to overcome the
problem. Yilmaz is reported to have said that Turkey does not need the
money of the IMF, but needs arrangements that will increase confidence in
the markets. The governor has also advised citizens not to obtain loans
linked to the dollar.


Arguing that it would be wrong to conclude an agreement with the IMF in an
article in Milliyet (28.10.08), Hursit Gunes reminds his readers that Turkey
was dragged into the 2001 crisis while implementing the stability program
prepared by the IMF. Blaming the IMF's "erroneous and risky" stability policy
based on the foreign exchange rate for the 2001 crisis, Gunes maintains that
it was the global liquidity abundance that rescued Turkey from the 2001 crisis
and brought it to its current position. Noting that this period of abundance is
about to end, the writer believes that the Turkish economy will definitely be
affected by the global financial crisis. Viewing Turkey's foreign deficit as its
major problem, Gunes draws up a scenario where this deficit is not financed:
"Let us says that this foreign deficit is not financed. What will happen? The
foreign currency exchange rate will be higher. What will happen then? If the
financial discipline and the monetary policies are strong, they will not have a
lasting inflationist impact. The growth rate will temporarily go down. What will
happen then? Exports will begin to speedily increase. Finally the Turkish
economy will begin to develop through exports. This needs courage. Will we
be able to risk it?"
Assessing the prime minister's defiant stand against the IMF and TUSIAD in
an article in Milliyet (28.10.08), Derya Sazak writes that Erdogan is trying to
convey to his voters on the eve of the local elections that he will not bow down
to a program to be imposed by the IMF and that he will not implement a "belt
tightening" policy. The writer adds that, however, the prime minister seems to
have forgotten that the "financial discipline" secured through the roadmap
drawn by Dervis and through the implementation of an IMF-supported
program led to the success of the AKP government during the years 2003 and
                                       26


2007. Accusing the prime minister of not taking the economic problems
awaiting Turkey in 2009 seriously, Sazak shows the recent 33-40 percent
devaluation of the Turkish lira as a harbinger of the problems to come.


Referring to Prime Minister Erdogan's remarks that he will not allow the IMF to
choke Turkey in Hurriyet (28.10.08) columnist Erkan Mumcu explains in his
600-word article that in general a country is in need of the IMF because it has
been wasteful. Stressing that countries apply to the IMF out of necessity,
Mumcu emphasizes: "Countries are forced to apply to the IMF only when the
economic cost of not applying exceeds the political cost of applying to this
institution." Interpreting this axiom to mean that countries that apply to the IMF
are already choking, the writer argues that policies to be implemented with the
help of the IMF aim at rescuing that country from their predicament.
Conceding that seeking financial aid from the IMF is a political decision,
Dogan declares that, nonetheless, this does mean that the various sectors of
the society cannot advise the political authority on the issue. Commenting on
the prime minister's remarks that the government should consider the
interests of the country instead of acting in line with the instruction of the
business world, Dogan reminds Erdogan that the views of the business world
do not contradict the interest of the country, adding that the concerns of this
sector whose foreign debts amount to $200 billion should be taken seriously.
Accusing the government of not implementing an economic program that will
be binding prior to the local elections, in Vatan (28.10.08) columnist Ali
Agaoglu in an article states that both the financial and real sectors should
have had a program the criteria of which were familiar to them and according
to which they could measure their successes or failures. Viewing the proposal
of the real sector to conclude an agreement with the IMF, Agaoglu criticizes
the government for rejecting this proposal. Had the necessary measures
been taken in advance, be they with or without the IMF, the cost of the crisis
would have been cheaper, argues the writer, asking why politicians who lack
the experience to deal with such crises restrict their maneuvering capabilities
                                          27


with harsh statements such as the ones being issued by the prime minister.
Agaoglu concludes by questioning whether the people have to pay for the
"crisis training expenses" of inexperienced politicians.


In an article in Hurriyet (28.10.08), Erdal Saglam calls on the prime minister to
view Turkey's relations with the IMF in the light of the country's long-term
interests. A government that has restored economic stability with the
assistance of an IMF deal and has won the national elections with a 47
percent majority cannot say that this fund is "trying to strangle us," writes
Saglam.


Under the headline, "Support for the Real Sector: $1 Billion Additional Cheap
Credit in the Pipeline," Zaman (28.10.08) runs a front-page report which
asserts that the Erdogan government is preparing to extend cheap loans to
the tune of $1 billion to exporters in a bid to minimize the impact of the global
crisis on Turkey.
                               -------------------------
EG/

				
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