US embassy cable - 05ANKARA2912

C O N F I D E N T I A L SECTION 01 OF 03 ANKARA 002912 
 
SIPDIS 
 
E.O. 12958: DECL: 05/22/2015 
TAGS: PREL, ETRD, EAID, ENRG, PTER, IZ, TU 
SUBJECT: TURKS REPORT SUCCESSFUL JA'AFARI VISIT 
 
REF: ANKARA 2548 
 
Classified By: A/DCM James R. Moore for reasons 1.4 (b) and (d). 
 
Summary 
------- 
 
1. (C) ITG PM Ja'afari made a successful May 19-21 visit to 
Turkey, according to a senior MFA official.  Turkey offered 
to double its electricity exports to Iraq right away, and to 
increase these exports seven-fold in the next half a year. 
The Iraqi Finance Minister proposed an unorthodox procedure 
which might move along Turkish-Iraqi discussions on a second 
border gate.  Under this proposal, Iraqi customs officials 
would perhaps collect duties on the Turkish side of the 
border.  The Turks seem interested, but skeptical that KDP 
leader Barzani would agree to such an arrangement.  Ja'afari 
reportedly told the Turks he would order the ITG to allow 
Turkey to re-open its consulate in Mosul immediately.  The 
Iraqi PM seemed to offer the right message but few specifics 
on key Turkish issues such as PKK and the future of Kirkuk. 
End summary. 
 
Turkey Pleased with PM Ja'afari's First Foreign Trip 
--------------------------------------------- ------- 
 
2. (C) A/DCM called on MFA Director General for the Middle 
East Oguz Celikkol on May 23 for a readout of the May 19-21 
visit to Ankara of Iraq's Transitional Prime Minister Ibrahim 
Ja'afari.  Celikkol said that Turkey was naturally very 
pleased that Turkey was Ja'afari's first foreign trip as 
Prime Minister; Ja'afari repeatedly pointed out Turkey's 
importance in his three press appearances here.  Ja'afari 
twice met privately with PM Erdogan in addition to their 
larger group meeting.  The Prime Ministers also attended 
Friday prayers together.  Ja'afari brought six ministers with 
him (all from the economic and trade areas) who also met with 
their Turkish counterparts.  Celikkol reported that the tone 
of the visit was "very friendly" and positive. 
 
3. (C) The Prime Ministers discussed a number of ideas to 
foster economic cooperation, including opening a second 
border gate, increasing Turkey's electricity exports to Iraq, 
commercial flights to Istanbul, cooperation on transboundary 
water and the interest of Turkish companies in oil production 
projects in Iraq, but left the details to their ministers to 
work out. 
 
Second Gate: Iraqis Make an Unusual Proposal 
-------------------------------------------- 
 
4. (C) Erdogan emphasized the importance to Turkey of a 
second border gate, and Ja'afari responded that "we 
understand and agree."  However, contrary to press reports, 
the two did not discuss the location of a second gate. 
Celikkol said that the Iraqi Finance Minister made a proposal 
that would "make the second gate much easier."  ITG Finance 
Minister Allawi reportedly proposed that the Iraqi government 
would take over collecting import duties at the border and 
might even make the collection on the Turkish side of the 
border and deposit the funds in a Turkish bank.  When Turkish 
officials asked whether KDP leader Masoud Barzani would 
object to the loss of this income source, the Iraqis 
responded that they would persuade Barzani.  Without offering 
further details, Celikkol said the Iraqis seemed confident 
that they would convince Barzani to agree to the proposal. 
 
Turkey to Step Up Electricity Exports to Iraq 
--------------------------------------------- 
 
5. (C) In a meeting with Turkish Minister of Energy and 
Natural Resources Guler, the Iraqi Ministers of Electricity, 
Oil and Water focused on Turkey's offer to double electricity 
exports to Iraq--from the current level of 170 MW to 330-350 
MW.  Guler also pledged to further increase electricity 
supplies to 1,200 MW in the next 6-7 months.  Celikkol noted 
that the increase to 350 MW could be accomplished right away 
with no extra cost for transmission lines or other 
infrastructure.  And Guler promised to overcome Turkish 
regulatory problems that have plagued the current export 
scheme.  Guler told the Iraqi ministers that Turkey has 
plenty of excess capacity to increase exports to Iraq and 
said that the increase to 1,200 MW would require investments 
in infrastructure on both sides of the border that could be 
completed in 6-7 months.  Celikkol reported that Water 
Minister Rashid explained Iraq's water needs but that there 
was little further discussion of cooperation on the Tigris 
and Euphrates water resources.  Guler raised the interest of 
Turkish oil companies in oil exploration and production 
projects in Iraq. 
Direct Flights, Business Cooperation 
------------------------------------ 
 
6. (C) In other meetings, the GOT noted its recent approval 
of Iraq's request to begin commercial (Air Iraq) flights to 
Istanbul.  Celikkol noted that Turkish Airlines had objected 
to the unilateral concession, but they were told that the 
decision was important politically and outweighed the 
airline's commercial interests.  The two sides agreed to 
support a meeting of Turkish and Iraqi business groups in 
Istanbul in September, and the Iraqis urged Turkish officials 
to begin disbursing their $50 million pledge for Iraqi 
Reconstruction. 
 
Ja'afari Okays Mosul Consulate 
------------------------------ 
 
7. (C) Celikkol reported that the political (and consular) 
discussions were productive.  According to Celikkol, Ja'afari 
told the Turks that upon his return to Baghdad he would order 
the ITG to allow Turkey to re-open its consulate in Mosul as 
soon as possible, something Turkey had been seeking for some 
time.  (NOTE: It appeared from a recent discussion between 
the Turkish and Iraqi fonmins that this issue was progressing 
well, but the Turks at that time (early May) told us that the 
security situation in Mosul meant they were not ready to set 
up shop in Mosul immediately anyway (see reftel).  END NOTE.) 
 
8. (C) While Turkey is not ready to offer Iraqis visas at the 
Habur Gate land border, the GOT has agreed to provide visas 
to Iraqis who land at Istanbul's airport.  Since Turkey has 
given permission for Iraq Air to fly Baghdad-Istanbul flights 
(see para. 6), this would be a convenience for Iraqis 
visiting Iraq.  Additionally, once Turkey re-opens its Mosul 
consulate, Iraqis will also be able to get their visas there. 
Celikkol noted that Turks wanting to travel to Iraq can only 
get their visas from the Iraqi embassy in Ankara; Iraq does 
not offer visas at the land border nor at BIAP. 
 
PKK, Sunni Outreach, and Kirkuk 
------------------------------- 
 
9. (C) Ja'afari told his hosts that Iraq will cooperate with 
Turkey regarding the PKK, and that Iraq does not want to be a 
haven for terrorists to attack Turkey.  Both publicly and 
privately, Ja'afari distanced himself from recent public 
comments attributed to FonMin Zebari in which he reportedly 
accused Turkey of being among Iraq's neighbors from which 
terrorists infiltrate into Iraq.  Ja'afari even admitted that 
in terms of the PKK, the situation is the reverse. 
 
10. (C) Ja'afari reportedly told the Turks that he is working 
to incorporate the Sunni Arabs as much as possible into the 
political process.  Ja'afari said that he will head a 7-8 
member ministerial group to assist the ITA's 55-member 
commission in drafting the Iraqi constitution.  Celikkol said 
that Turkey offered its expertise to assist with the 
constitutional process; Ja'afari said Iraq would accept this 
offer, but only at the expert level. 
 
11. (C) Celikkol reported that PM Ja'afari gave PM Erdogan 
and the press very similar messages on Kirkuk: It is both an 
ethnically-diverse city and an Iraqi city.  But Celikkol 
reported that Ja'afari did not provide his thinking on how to 
proceed with dealing with this issue, though he may have in 
his one-on-one meetings with Erdogan. 
 
Comment: Economic Issues Stand Out 
---------------------------------- 
 
12. (C) Both the Turks and, it appears, the Iraqis were 
determined to make this a successful visit.  If the two sides 
strongly disagreed on anything, the Turks did not reveal it 
to us.  Ja'afari's visit did seem to emphasize economic 
deliverables; there seem to have been few specifics on larger 
political issues such as Kirkuk and the PKK.  If the Turks 
are prepared to almost immediately double their electricity 
exports to Iraq and then increase them seven-fold in the next 
six months or so, this is a significant development.  The 
Iraqis' unusual proposal to deal with customs duties at Habur 
Gate is, to say the least, unorthodox.  Celikkol seemed 
somewhat skeptical that ITG Finance Minister Allawi would be 
able to get Barzani to accept this proposal.  We defer to 
Embassy Baghdad on that point. 
 
13. (U) Iraq posts minimize considered. 
EDELMAN