US embassy cable - 03ANKARA6906

UNCLAS SECTION 01 OF 02 ANKARA 006906 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR E, EB, EB/CBED AND EUR/SE 
TREASURY FOR OASIA 
DEPT PLEASE PASS USTR FOR CNOVELLI/LERRION 
FAS FOR ITP/THORBURN 
USDOC FOR ITA/MAC/DDEFALCO 
 
 
E.O. 12958: N/A 
TAGS: ECON, PREL, ETRD, EINV, ENRG, TU 
SUBJECT:  MFA Requests More on Iraq Issues at Economic 
Partnership Commission Meeting; Embassy Supports 
 
 
Ref: (A) State 306478 (B) Ankara 6530 
 
 
Summary 
------- 
 
 
1. (SBU) MFA's only substantive comment on our draft 
Economic Partnership Commission (EPC) agenda was that 
Iraq economic issues merit a separate session on the 
agenda.  The Turkish side does not expect its companies 
to gain Iraq reconstruction subcontracts at this 
meeting, but views the opportunities to exchange 
information and to network with U.S. officials and 
companies as a major outcome for the EPC.  The Embassy 
supports MFA's view, and encourages Washington agencies 
to structure sessions on Iraq economic issues in both 
the governments-only and the private sector parts of the 
EPC.  These sessions could contribute to expanded 
Turkish economic relations with Iraq, and thereby 
accelerate Iraq's stabilization and reconstruction.  We 
also believe the EPC is an appropriate venue to 
highlight Commerce's Iraq Reconstruction Initiative. 
End Summary. 
 
 
Accent on Iraq Issues 
--------------------- 
 
 
2. (SBU) Meeting with Econoff on November 3, Mehmet 
Gucuk, MFA Deputy Director General for Bilateral 
Economic Affairs, stated that it was very important for 
the Turkish side to schedule a discussion of Iraq 
economic issues as a separate EPC agenda item, rather 
than including this in a discussion of regional issues 
over lunch on December 2.  Gucuk stated that the Turkish 
side would like to have a private sector session on the 
Iraq reconstruction contracting process, which would 
also give Turkish companies the opportunity to network 
with U.S. contractors and USG officials, including from 
the Coalition Provisional Authority, as well as 
government-to-government sessions on other Iraq economic 
issues.  He said that Turkish companies and the GOT do 
not expect to walk away from the EPC with subcontracts; 
rather, the Turkish side believes that holding a session 
which "educates" Turkish companies on Iraq issues would 
in and of itself be a key achievement. 
 
 
Other EPC Topics 
---------------- 
 
 
3. (U) Using ref (A), Econoff briefed Gucuk on our 
agenda items and highlighted our interest in resolving 
investment and trade problems prior to the EPC. 
Gucuk told us that MFA would chair a GOT interagency 
meeting on the EPC on November 12.  He said that MFA 
would discuss QIZs as well as other agenda items with 
with Foreign Trade and other interested agencies at that 
meeting, which is likely to be the only interagency 
meeting scheduled prior to the EPC. 
 
 
4. (U) On the private sector segment of the EPC on 
December 3, Gucuk opined that it might be more useful to 
hold several sessions (on Iraq and on investment issues) 
simultaneously so as to make it easier for participants 
to stick to a tight schedule and to enable companies to 
attend only industry-specific meetings if they chose to 
do so.  Gucuk expressed confidence that the Foreign 
Economic Relations Board (DEIK) and the American Turkish 
Council (ATC) are well-placed to handle the details of 
the private sector program. 
 
 
5. (U) The GOT delegation is likely to be similar in 
terms of the agencies represented at the first EPC, 
though Gucuk said that not more than 20 GOT officials 
would attend the government-government sessions on 
December 2.  He said the GOT delegation would likely 
include officials from MFA, Treasury, Foreign Trade, 
Customs, Transport/Communications, Health and 
Agriculture/Rural Affairs. 
 
 
Comment 
------- 
 
 
6. (SBU) Widening Turkish economic relations with Iraq 
will help stabilize Iraq's economy and contribute to 
prosperity on both sides of the border.  The success of 
Iraq reconstruction is vital to both U.S. and Turkish 
foreign policies.  For these reasons, the Embassy 
endorses MFA's suggestion that we devote more time to a 
discussion of Iraq issues at the EPC. 
 
 
7. (SBU) At the governments-only session on December 2, 
we recommend that the USG, including CPA 
representatives, lead a presentation on issues in 
reconstruction, trade relations and regulations, finance 
issues, reform of Iraq's business climate and 
humanitarian assistance.  At this meeting, we would 
recommend that Commerce brief participants on its Iraq 
Reconstruction Initiative, which will help companies 
from both the United States and Iraq's neighbors to 
partner with one another and with Iraqi companies.  At 
the EPC, Commerce could describe planned Iraq 
reconstruction seminars and conferences in Turkey 
(December), Amman (January) and at the ATC conference 
(April).  We believe it would be very useful to include 
relevant Iraqi officials in this session of the EPC if 
possible.  The Turkish side could report on the 
experience of Turkish businesses operating in Iraq and 
ask questions. 
 
 
8. (SBU) The following day, the same U.S., and possibly 
Iraqi, officials could brief Turkish business on 
reconstruction contracting and subcontracting, banking, 
insurance, and border issues.  Turkish business would 
also have the opportunity to share their experiences and 
suggestions, ask questions, and network with U.S. 
officials and private companies attending the session. 
In addition to prime contractors, U.S. companies 
participating in the Commerce conferences described 
above could be recruited to attend this session of the 
EPC. 
 
 
9. (U) Baghdad minimize considered. 
 
 
Edelman