US embassy cable - 03ANKARA6393

UNCLAS SECTION 01 OF 02 ANKARA 006393 
 
SIPDIS 
 
 
DEPT FOR EB/TRA, EUR/SE, NEA/NGA 
ROME FOR FAA 
PARIS FOR TSA 
 
 
SENSITIVE 
 
 
E.O. 12958: N/A 
TAGS: EAIR, EWWT, ELTN, ETRD, KPRV, BEXP, TU, IZ 
SUBJECT:  Ambassador's Introductory Meeting with 
Transport and Communications Minister 
 
1. (U) Baghdad minimize considered. 
 
 
Summary 
------- 
 
 
2. (SBU) Meeting with Transport Minister Binali Yildirim 
on October 1, the Ambassador emphasized U.S. interest in 
maintaining high safety and security standards in civil 
aviation.   (Aldo, this is just a laundry list of what 
they discussed, and doesn't give any indication of the 
substance of the meeting.  I'd suggest changing to 
highlight the 2-3 points Ambassador pressed on, then 
show Yildirim's response).Meeting on October 1, the 
Ambassador and Transport and Communications Minister 
Binali Yildirim discussed aviation and maritime issues, 
Iraq reconstruction, Turk Telecom privatization, 
commercial opportunities for U.S. companies and the 
Motorola case.  Yildirim agreed that aviation safety and 
security are priority issues.  He also provided 
information on upcoming tenders for modernization of 
Turkey's air traffic control system and for the 
privatization of Turk Telecom.  Yildirim made the pitch 
for a Turkish role in transport and communications areas 
of Iraq reconstruction.  The Ambassador raised the 
Motorola case, noting its negative impact on Turkey's 
ability to attract foreign investment.  Binali agreed on 
the importance of attracting FDI, and said the GOT was 
taking steps to prevent the Uzans from putting their 
assets out of the reach of the GOT and other creditors. 
End Summary. 
 
 
3. (SBU) In their introductory meeting, the Ambassador 
and Transport and Communications Minister Binali 
Yildirim discussed a range of issues, including air 
safety and security, navigation in the straits, Iraq 
reconstruction, Turk Telecom privatization, commercial 
opportunities for U.S. companies and the Motorola case. 
 
 
Aviation Issues 
--------------- 
 
 
4. (SBU) The Ambassador congratulated the Minister on 
his visit to Washington in September, including the 
signing of a technical assistance agreement with the 
FAA.  He emphasized the USG interest in high standards 
for civil aviation safety and security.  The Ambassador 
inquired about Turkish plans to modernize air traffic 
management, noting that U.S. companies are very 
competitive in this area.  He also raised American 
Airlines application for a codeshare agreement with 
British Airways flights between London and Istanbul, 
which is awaiting GOT approval. 
 
 
5. (SBU) Yildirim agreed on the importance of 
maintaining high safety and security standards.  He 
stated that the air traffic management modernization 
project would be awarded in a tender open to 
international companies, with a request for proposals to 
be issued by the end of 2003.  The Minister told the 
Ambassador that Lockheed-Martin had met with him earlier 
in the day to discuss this project. 
 
 
Congestion in the Straits 
------------------------- 
 
 
6. (SBU) Yildirim noted Lockheed-Martin's work on a 
vessel management system for the Bosphorus/Dardanelles. 
The system, due to become operational at the end of 
October, should help with the problem of congestion in 
the straits.  Yildirim contended that Russian Government 
demands for greater throughput through the straits were 
unreasonable and could not be accommodated. 
 
 
Iraq Reconstruction 
------------------- 
 
 
7. (SBU) Yildirim raised the GOT's interest in transport 
and telecommunications cooperation in Iraq 
reconstruction, and suggested that Turkish partnership 
with the United States in Afghan reconstruction provided 
a good model for what could be done in Iraq.   The 
Ambassador responded that he believed Turkish companies 
would be competitive in Iraq reconstruction. 
 
 
Privatization 
------------- 
8. (SBU) In response to a question from the Ambassador, 
Yildirim stated that the GOT was preparing to announce 
its privatization plan by for Turk Telekom by the end of 
October, with the objective of holding an open tender in 
the first quarter of 2004.  Noting that the GOT faced 
budget constraints in implementing its public investment 
program, the Ambassador suggested that the Transport 
Ministry might also examine the possibility of garnering 
private investment through Build-Operate-Transfer (BOT) 
arrangements.  Yildirim agreed that this or similar 
arrangements might provide an opportunity to address 
priority projects. 
 
 
Motorola 
-------- 
 
 
9. (SBU) Noting that Gen. Scowcroft had discussed this 
issue with the Prime Minister, the Ambassador raised 
Motorola's dispute with Telsim, and the severe negative 
publicity this had created for Turkey's investment 
climate.  The Minister agreed that attracting foreign 
direct investment is one of Turkey's top priorities.  He 
said that the GOT also had claims on the Uzan family in 
connection with the failure of Imar Bank, and that the 
GOT was doing everything it could to prevent the Uzans 
from siphoning assets to shelter them from legitimate 
claimants.   Yildirim agreed with Motorola that Telsim 
should keep its mobile phone license, which would 
increase the chances of satisfying claims on the Uzans, 
at least in part. 
Edelman