US embassy cable - 03ANKARA5850

UNCLAS ANKARA 005850 
 
SIPDIS 
 
 
DEPT FOR E, EUR/SE AND EB 
DEPT PASS USTR FOR LERRION 
TREASURY FOR OASIA - MILLS AND LEICHTER 
 
 
SENSITIVE 
 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, EINV, ETRD, PREL, TU, IZ 
SUBJECT:  Ambassador's Meeting with TOBB President Rifat 
Hisarciklioglu 
 
 
Summary 
------- 
 
 
1. (SBU) In the Ambassador's first call on Turkish Union of 
Chambers and Commodity Exchanges (Turkish acronym TOBB) 
President Rifat Hisarciklioglu, the two sides discussed Iraq 
reconstruction, economic reform, the upcoming Economic 
Partnership Commission meeting, and investment climate 
issues.  Hisarciklioglu provided us with a copy of TOBB's 
report on Iraq reconstruction problems.  The Ambassador 
emphasized the interest of both the United States and Turkey 
in a unified, democratic and prosperous Iraq, and said that 
Turkish companies were in a good position to gain a share of 
Iraq reconstruction contracts.  End Summary. 
 
 
Iraq Reconstruction 
------------------- 
 
 
2. (U) Hisarciklioglu told the Ambassador that he planned to 
attend a conference on Iraq reconstruction hosted by the 
Center for Strategic and International Studies (CSIS) on 
September 18 and 19, and delivered a TOBB report on this 
subject.  The report, based on a survey of businesses 
dealing with Iraq, found that obtaining accurate 
information, transport and payments were key problems. 
 
 
3. (SBU) The Ambassador responded that the United States and 
Turkey share an interest in a unified, democratic, and 
prosperous Iraq.  He also stressed the President's 
commitment to political and economic reform in the broader 
Middle East.  He emphasized that the U.S. Administration 
does not intend to disadvantage Turkish companies seeking 
Iraq reconstruction contracts.  On the contrary, Turkish 
companies should be very competitive in this environment. 
 
 
Economic Priorities 
------------------- 
 
 
4. (U) Hisarciklioglu began by pointing out that TOBB, 
representing about 1.2 million individuals and companies, 
was intimately familiar with Turkey's socioeconomic 
situation.  TOBB fully supports the economic/structural 
reform program, rule of law, equal opportunity for all, and 
efficient administration of justice. 
 
 
5. (SBU) TOBB's President noted that bilateral relations 
have developed since the 1980's, but that economic and 
commercial relations lagged our political relations.  For 
example, Turkish trade with the United States is not 
expanding as quickly as overall Turkish foreign trade. 
Hisarciklioglu praised past cooperation with the Embassy on 
economic issues, including the establishment of American 
corners in Gaziantep, Kayseri and Bursa.  He also expressed 
gratitude for U.S. economic support in the form of the USD 
8.5-billion loan package.  Hisarciklioglu suggested that the 
private sector be given a role in this fall's Economic 
Partnership Commission meeting. 
 
 
6. (SBU) The Ambassador acknowledged that Turkey's economic 
picture, with lower inflation and economic growth, continues 
to improve.  He agreed that bilateral economic relations 
should be strengthened, and that foreign investment should 
be an important element in this.  He pointed out that 
macroeconomic stability is a necessary, but not a 
sufficient, condition for attracting foreign direct 
investment.  In particular, the GOT also needs to resolve 
problems affecting existing U.S. investors and to improve 
transparency.  The Ambassador agreed that some form of 
private sector participation in the EPC would be useful. 
Edelman