US embassy cable - 04ANKARA3123

C O N F I D E N T I A L ANKARA 003123 
 
SIPDIS 
 
 
STATE FOR P, E, EUR/SE 
TREASURY FOR OASIA - LOEVINGER, MILLS, ADKINS 
NSC FOR BRYZA AND MCKIBBEN 
 
 
E.O. 12958: DECL: 06/07/2014 
TAGS: EFIN, EAID, PREL, TU 
SUBJECT: U.S.-TURKEY FINANCIAL AGREEMENT 
 
 
REF: SECSTATE 122407 
 
 
(U) Classified by Ambassador Eric S. Edelman.  Reasons: 
1.4(b, d) 
 
 
1.  (C) Per reftel instructions, Ambassador reiterated to MFA 
U/S Ziyal June 4 that the U.S. considered negotiations on 
changes to the language in the financial agreement to be 
over.  Referring to local press reports from that morning 
quoting Prime Minister Erdogan as saying that Turkey would 
not accept the $8.5 billion because of the political 
conditions attached to it, Ambassador asked whether the USG 
should consider the PM's statement Turkey's official answer. 
 
 
2.  (C) Ziyal, who said he had not seen the press reports, 
responded "I don't think so," but promised to check with the 
Prime Minister.  He confided that he had recommended to 
Foreign Minister Gul that Turkey accept the latest USG 
language, and understood Gul was still discussing this with 
State Minister Babacan. 
 
 
3.  (C) Ambassador noted that Treasury U/S Taylor had told 
Minister Babacan earlier in the week that some Members of 
Congress had begun to ask whether the USG should rescind the 
loan offer, in light of Turkey's reluctance to accept it. 
U/S Taylor had argued against rescinding the package, and had 
told Babacan that, while he did not see an immediate threat 
of Congress pulling the money back, Turkey could not wait 
forever.  Ambassador told Ziyal that he could not say how 
long the money would remain available, particularly in light 
of further GOT negative statements about it. 
EDELMAN