US embassy cable - 04ANKARA5827

C O N F I D E N T I A L ANKARA 005827 
 
SIPDIS 
 
DEPT PASS USTR 
DEPT FOR EUR/SE, EUR/ERA 
 
E.O. 12958: DECL: 10/12/2009 
TAGS: PREL, ETRD, TU, CY, EUN 
SUBJECT: TURKEY EXTENDS CUSTOMS UNION TO CYPRUS 
 
REF: ANKARA 5816 
 
Classified By: (U) Classified by Deputy Chief of Mission Robert Deutsch 
 for reasons 1.4 b, d. 
 
1. (U) On October 2, several days before issuance of the 
European Commission's report on Turkish progress toward 
accession, the Turkish MFA announced that all new EU 
members, including the Republic of Cyprus, would be included 
within the 
scope of the Turkey-EU Customs Union.  The announcement 
followed GOT Cabinet approval of an amendment to the customs 
union agreement to include all new EU member states.  This 
amendment supersedes a May 7, 2004 Cabinet decision which 
extended the customs union to the other nine new members and 
which excluded the Republic of Cyprus.  The MFA announcement 
(reftel) underscores that this step does not imply 
recognition of the Republic of Cyprus or a change in its 
relationship with 
the Turkish Cypriot administration in northern Cyprus. 
 
2. (C) In subsequent conversations with us, European 
diplomats, including the EU President Dutch DCM, averred that 
the EU will not require Turkey to take any further steps with 
respect to Cyprus prior to the EU Summit in December.  MFA 
Cyprus Department Head Bilman told us that Turkey does 
not contemplate further measures, such as maritime and 
aviation links, arguing that these areas are outside 
the scope of the Customs Union.  He also noted the lack of 
concrete progress in easing the isolation of the Turkish 
Cypriots.  Nor, he added, will Turkey sign a protocol on the 
matter with the ROC:  making the extension operational is an 
internal Turkish matter, he argued, and Turkey had signed no 
such protocol with any other new EU member. 
 
3. (C)  When we spoke to him on October 4, Bilman worried 
that extending the Customs Union would draw criticism from 
the nationalistic elements in Turkey, including the 
opposition Republican Peoples, Party (CHP) and the military. 
 CHP Member of Parliament and Vice Chair for International 
Relations Oymen claimed to us on October 8 that the CHP 
understood Customs Union extension was "unavoidable" if 
Turkey wanted to get a date in December, and that the CHP 
would not criticize it.  On October 13, Bilman said the MFA 
had not yet received the criticism he feared. 
 
4. (C) Cemalettin Damlaci, Director General for EU Affairs at 
the Foreign Trade Undersecretariat, told Econoff and Econ 
Specialist on October 
8 that the GOT's October 2 announcement has not actually 
been implemented.  Implementing regulations must be issued 
for the Customs and Foreign Trade Undersecretariats.  Asked 
about the timing of these regulations, Damlaci implied that 
the Greek Cypriots 
would need to show a "positive approach" before Turkey 
finalized these measures.  Conversely, Customs Director 
General for EU Affairs Sabahattin Kocas told Econ Specialist 
on October 13 that he expected the Prime Ministry to approve 
the implementating regulation for the Customs 
Undersecretariat soon. 
EDELMAN