US embassy cable - 03ANKARA6420

C O N F I D E N T I A L ANKARA 006420 
 
SIPDIS 
 
 
STATE FOR E, EUR/SE, AND EB/IFD 
TREASURY FOR OASIA - MMILLS AND JLEICHTER 
NSC FOR BRYZA AND MCKIBBEN 
 
 
E.O. 12958: DECL: 10/13/2008 
TAGS: EFIN, EAID, PREL, TU 
SUBJECT: MFA RAISES PROBLEM WITH U.S. FINANCIAL AGREEMENT'S 
UNILATERAL DEPLOYMENT BAN 
 
 
Classified by Ambassador Eric Edelman for reasons 1.5 (b) and 
(d). 
 
 
1.  (U) This is an action request. See paragraph 4. 
 
 
2.  (C) At the end of a meeting on other issues (reported 
septel) with the 
Ambassador October 14,  MFA U/S Ziyal said the GOT has a 
serious problem with 
the U.S. Financial Agreement (FA).  "We may not be able to 
finalize it,"  he 
said, specifying that "finalizing" meant  taking it either to 
the Council of 
Ministers or to Parliament.  Note: Turkish Treasury staff had 
earlier assured 
Emboffs that the FA would only go to the Council of Ministers 
and not to 
Parliament. End note.  The problem, according to Ziyal, was 
the language on 
Turkish troops not unilaterally entering Iraq.  He stressed 
that Turkey had no 
intention of making such an intervention, but did face a 
serious political 
problem because of the language on conditionality, a problem 
that he would like 
to avoid. 
 
 
3.  (C) The Ambassador said Washington had felt it important 
that language 
in the agreement conform to the legislation, and that we had 
done everything 
possible in our public statements to stress that we were not 
imposing new 
conditions and making clear that the language in the 
legislation/agreement was 
based on concerns from early in the year that no longer 
pertained.  He said 
Turkey always had the option not to take the money -- "we're 
not trying to 
force $1 billion of U.S. taxpayer money upon you."  Ziyal 
asked if we could 
amend the language in the agreement.  The Ambassador said he 
could not be very 
optimistic, but we would ask Washington.   In a one-on-one at 
the end of the meeting, Ziyal told 
the Ambassador that President Sezer would refuse to sign the 
agreement unless 
the language on conditionality was removed. 
 
 
4.  (C) Action request:  Post realizes changing the agreement 
is extremely problematic. 
Ambassador told Ziyal that, of course, Turkey did not need to 
draw on the money as they have 
said repeatedly that they had not planned on the loan, but we 
wonder about a side letter 
that might give GOT some political comfort without changing 
the actual agreement. 
Post requests Washington consideration of the issue and 
guidance in responding to the GOT. 
 
 
5.  (U) Baghdad minimize considered. 
 
 
EDELMAN