US embassy cable - 04ANKARA6482

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 006482 
 
SIPDIS 
 
DEPT FOR EB, EAP/K, AND EUR/SE 
DEPT PASS USTR FOR LERRION 
 
E.O. 12958: DECL: 11/17/2009 
TAGS: ECON, ETRD, KN, KS, TU 
SUBJECT: TURKISH-NORTH KOREAN ECONOMIC AGREEMENT SIGNED 
 
 
Classified By: (U) Classified by Economic Counselor Thomas Goldberger f 
or reasons 1.4 b and d. 
 
1. (SBU) Turkey's Foreign Trade (FTU) Undersecretary and the 
North Korean Ambassador to Bulgaria and Turkey signed a trade 
and economic cooperation agreement in Ankara on November 12. 
Two-way trade, valued at less than USD 5 million, is 
minuscule.  Osman Bekaroglu, FT's Deputy Director General for 
Agreements, and Ilhan Tug, of MFA's Bilateral Economic 
Affairs Department, told Econoff that the North Korean side 
requested this agreement by diplomatic note, as a follow-on 
to establishment of diplomatic relations two years ago.  Tug 
said that the agreement contained standard language used in 
many of Turkey's other bilateral economic cooperation 
agreements.  While there is no real substance or obligations 
for either side, Tug maintained that it does present a basis 
for developing economic ties.  Tug told us that the GOT had 
consulted with Seoul prior to moving forward, and that the 
South Koreans were supportive of the agreement. 
 
2. (C) At a meeting on another subject, POLMILCOUNS raised 
the new Turkey-North Korea new economic agreement with MFA 
Acting DDG for Disarmament Bulent Meric, reminding Meric that 
North Korea is known proliferator.  If increased trade were 
to result from this agreement, DPRK shipments transiting 
Turkey should be carefully scrutinized.  Meric responded 
that, although Turkey had limited its participation in the 
Proliferation Security Initiative because of its exclusion 
from the PSI Core Group, it still fully subscribed to PSI 
principles.  The GOT had "zero tolerance" for proliferation 
and would do all it could to prevent transit through Turkey 
of WMD material and delivery systems from any source. 
 
3. (U) The following is an unofficial Embassy translation of 
an FTU press release on the agreement. 
 
Begin text: 
 
TURKEY-KOREA DEMOCRATIC PEOPLE,S REPUBLIC, TRADE AND 
ECONOMIC COOPERATION AGREEMENT 
 
The Republic of Turkey and Korea Democratic People Republic 
signed the &Trade and Economic Cooperation Agreement8 on 
November 12, 2004 in Ankara.  The agreement was signed by 
Foreign Trade Undersecretary Tuncer Kayalar and Korea 
Democratic People,s Republic,s Ambassador to Bulgaria and 
Turkey Kim Ha Dong. 
 
The agreement is the first economic and commercial document 
signed between the two countries and bears importance in 
developing the bilateral relationship and establishing the 
legal basis to meet this aim. 
 
The agreement is an outcome of preliminary efforts by the FTU 
within the context of the &Trade and Economic Relationship 
Development Strategy with Asian Pacific Countries8, which 
will start to be implemented as of 2005.  The agreement 
includes provisions that will lead to an extended development 
of the bilateral relationship. 
 
The agreement also determines the principles of the 
commercial relationship, as well as the sectors with future 
cooperation potential.  The agreement also decides to 
establish a Joint Economic Commission  (JEC) to carry out the 
required work to meet the aim.  The JEC will establish a 
platform, where commercial, economic, industrial, technical 
and scientific issues will be discussed at senior level.  The 
JEC will also help in guiding the public and private sector, 
and also in handling any obstacle that may come up in the 
relationship. 
 
In the meeting held to sign the agreement, both sides 
discussed the measures that need to be taken to help develop 
bilateral contacts as of 2005 as well as the potential fields 
and sectors of cooperation. 
 
The trade volume between two countries reached USD 4 million 
as of end-2003, and USD 4.5 million trade volume have been 
realized only in the first nine months of 2004.   Turkey,s 
exports to the Korea Democratic People,s Republic were USD 
1.5 million in 2003, and imports were USD 2.5 million. 
Turkey,s main export items are mainly spare parts of motor 
vehicles, airplane and vessel travel food, other pastry 
products.  Imports are mainly pencils, drawing colored 
pencils, glasses for eye-wear, loading machine with a full 
rotating capacity and transmitting materials with receivers. 
 
During his stay the Ambassador of the Korea Democratic People 
Republic also held contacts about a &Double Taxation 
Agreement8 that will possibly be signed next year, and on 
several other bilateral issues. 
End text press release. 
EDELMAN