US embassy cable - 04ANKARA2075

UNCLAS ANKARA 002075 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR EB/CBED AND EUR/SE 
NSC FOR BRYZA 
 
 
E.O. 12958: N/A 
TAGS: EPET, EWWT, PREL, SENV, TU 
SUBJECT: PRESENTING DEPARTMENT REACTION TO MFA VOLUNTARY 
PRINCIPLES PROPOSAL 
 
REF: A. (A) STATE 73545 
     B. (B) ANKARA 1060 
 
 
(SBU) A/DCM presented Department's reaction (ref A) on the 
MFA's voluntary principles proposal to MFA Deputy Director 
General for Energy Hakki Akil on April 5.  Akil expressed 
appreciation for the USG interest and comments.  He stressed 
that the MFA proposal was not intended in any way to weaken 
or contravene the Montreaux Convention, and that the MFA 
shared the U.S. view that market forces had to lead pipeline 
development. He reiterated that the fundamental purpose of 
the proposal was to help the oil companies get out of their 
current dilemma, in which they understand the commercial need 
to develop bypass pipelines but do not take the initiative 
for fear they will end up subsidizing their "free riding" 
competitors (who would benefit from the reduced crowding in 
the straits).  Akil promised to study the Department's 
comments in more detail, and looked forward to continuing the 
dialogue. 
EDELMAN