US embassy cable - 04ANKARA1605

UNCLAS ANKARA 001605 
 
SIPDIS 
 
 
DEPT FOR EB/IFD/OMA - MBOCCHETTI AND EUR/SE 
DEPT PLEASE PASS USTR 
USDA FOR FAS/ITP HENKE, MEYER, HANSEN 
TREASURY FOR OASIA - MILLS AND LECHTER 
 
 
SENSITIVE 
 
 
E.O. 12958: N/A 
TAGS: EINV, EAGR, TU 
SUBJECT:  Danistay Rules Against Cargill Zoning Amendment 
 
 
Sensitive But Unclassified.  Please Handle Accordingly. 
 
 
Ref:  Ankara 608 
 
 
1. (U) Last week, the Turkish Danistay (Council of State) 
upheld a lower Danistay ruling, which struck down the 
amendments to the Iznik Lake Environmental Development Plan 
which enabled Cargill to build its USD 90 million corn syrup 
plant.  The Ministry of Public Works, the Prime Ministry, 
and Cargill had appealed the lower (6th Department) Danistay 
ruling. 
 
 
2. (SBU) Cargill's Director of Corporate Affairs told us 
that the company had expected this Danistay decision, which 
does not affect current permits.  He said the GOT planned to 
appeal the Danistay decision, and that this case, along with 
related cases brought by NGOs against the Cargill plant, 
would probably remain in the courts until the end of 2005. 
 
 
3. (SBU) The GOT has promised to submit industrial zone 
legislation to Parliament that, in effect, would legitimize 
Cargill's operation, despite zoning violations, but the 
draft law has languished in the Prime Ministry for several 
months.  Although some GOT interlocutors (reftel) have 
pointed out that this bill may not solve the problem, since 
a constitutional amendment might be necessary to allow 
manufacturing operations on class 1 agricultural land, we 
and Cargill believe its passage would be an important 
positive step.  Embassy will continue to press the GOT, 
including at the Ministerial level, to resolve this 
investment problem as swiftly as possible.  Edelman