US embassy cable - 04ANKARA6206

UNCLAS SECTION 01 OF 02 ANKARA 006206 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, EINV, PREL, PGOV, TU 
SUBJECT: AMBASSADOR EDELMAN'S OCTOBER 25 VISIT TO IZMIR 
 
 
1.  (SBU)  Summary: Izmir provincial and municipal, business 
and academic officials warmly welcomed Ambassador Edelman 
during his first official visit to  Izmir, October 25. 
Focusing on commercial issues, Ambassador encouraged both 
the business community and municipal officials to create an 
atmosphere  conducive to foreign direct investment, including 
resolution of legal problems  encountered by U.S. firms, to 
attract more U.S. investment to Turkey.  His speeches to the 
Izmir Chamber of Commerce on investment opportunities and to 
the Turkish American Association on the 2004 U.S. election 
attracted large  audiences with a keen interest in U.S. 
commercial and political policies in the region.  Prior to 
the Ambassador's meeting with the governor, approximately 50 
members of the Workers' Party staged a brief protest. 
Addressing concerns  about the status of the U.S. presence in 
Izmir, Ambassador stressed that there would be no change in 
the level of services offered by the U.S. mission in  Izmir. 
End Summary. 
 
2.  (SBU)  Ambassador Edelman, accompanied by the PAO, 
economic counselor, FCO, and Izmir liaison officer, focused 
on commercial advocacy issues during his first  official 
visit to Izmir on October 25.  He addressed challenges and 
prospects  for U.S.-Turkish business in meetings with Izmir 
business leaders at the  Chamber of Commerce, the Chamber of 
Industry and at the Aegean Free Zone.  Discussing 
U.S.-Turkish investment and business opportunities in his 
address to the Izmir Chamber of Commerce, Ambassador 
expressed confidence that Turkey's  full EU membership and 
implementation of business-friendly financial reforms  would 
help attract foreign direct investment and stable financing. 
Creating an environment supportive of foreign investment, 
including harmonizing domestic  standards and resolution of 
legal problems encountered by U.S. firms in Turkey,  will be 
key to increasing U.S. investment in Turkey.  Ambassador also 
noted that Turkey's choice to play a more active role in the 
Broader Middle East initiative would set a powerful regional 
example.  Chamber of Commerce President  Demirtas was 
optimistic that Izmir, with its agricultural, textile and 
jewelry production and commodity exchange, could prove to be 
an optimal site for joint ventures with the U.S. 
 
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Meetings with Governor and Mayor 
------------------------------------- 
 
3.  (SBU)  Prior to the Ambassador's meeting with Governor 
Goksu, a 50-strong  worker's party group staged a brief 
anti-U.S. protest, quickly subdued by the  police.  Goksu 
noted Izmir's center of international culture and long 
history as a gate to the west, and regretted the end of 
direct international flights to  Izmir following the 
bankruptcy of Swissair.  Goksu encouraged Ambassador Edelman 
to return frequently to Izmir, and hoped that the U.S. would 
not diminish its presence in Izmir.  Ambassador raised the 
closure of the Ovacik  mine, owned by Newmont Mining 
Corporation, near Izmir in August 2004 and urged  him to take 
steps to open the mine without delays.  Goksu said he was 
aware of the contribution of the mine to the Turkish economy. 
 However, he stressed that public opinion regarding the 
reopening of the mine was both negative and positive, and he 
preferred that all legal and technical documentation be 
completed before making a decision. 
 
4.  (SBU)  Ambassador raised the problems with the Konak Pier 
investments with newly elected Mayor Kocaoglu.  Kocaoglu 
downplayed the Konak Pier issue, noting that the stores were 
in operation, despite the lack of operating licenses. 
 
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U.S. Presence in Izmir 
------------------------ 
 
5.  (SBU)  All business and political contacts pressed 
Ambassador Edelman to clarify the status of the U.S. presence 
in Izmir.  Ambassador underlined that while the exact status 
of U.S. offices would be determined after consultation with 
the U.S. Congress at some point after mid-November 2004, 
there would be no change in the level of service provided by 
the U.S. in the consular and commercial fields, in public 
diplomacy, or in contacts with political and economic 
officials.   He stressed that diplomats from the U.S. Embassy 
in Ankara and the liaison officer from U.S. consulate in 
Istanbul would visit Izmir regularly and continue and expand 
contacts with local officials. 
 
6.  (U) Ambassador's talk at the Turkish American Association 
on the U.S. Presidential election was attended by 200 faculty 
and students from Izmir universities and members of the 
community.  As in his lectures the previous week at 
universities in Konya and Kayseri, the Ambassador discussed 
in context in which the election will be held.  He noted that 
whereas economic and social themes normally dominsate, this 
year Iraq and the global war on terror are the leading issues 
for voters.  He predicted unusually high turnout, and 
provided an overview of current polling and of factors that 
may limit the ability of polls to accurately forecast the 
result.  Ambassador predicted that the outcome of the 
elections would not significantly impact U.S.-Turkish 
relations, and noted that the Republican and Democratic 
candidates share similar goals for the future of Iraq and 
both will place priority on the Broader Middle East. 
 
7.  (U) Ambassador's visit to Izmir was widely reported by 
local and national media.  Coverage focused on his speech at 
the Chamber of Commerce on U.S.-Turkish commercial and 
investment opportunities and the importance of creating an 
environment that is friendlier to foreign investors. 
 
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Political Party Meetings 
-------------------------- 
 
8.  (SBU)  Izmir liaison officer discussed local and regional 
politics with CHP and AKP Izmir party leaders October 27. 
CHP party head Yuksel, who had recently won reelection to a 
4-year term, was engaged in outreach to the agricultural 
community, but was confident of continued 60 per cent overall 
support for CHP in the Izmir area.  Yozgat-origin AKP party 
head Aslik was hopeful that AKP would top CHP in the next 
local election, based on growing immigration from the east. 
Aslik was curious about post-election U.S. policy in Iraq, 
and commented that the U.S. should review its policy in the 
Middle East. 
EDELMAN