US embassy cable - 05ANKARA3192

UNCLAS SECTION 01 OF 02 ANKARA 003192 
 
SIPDIS 
 
SENSITIVE 
 
TREASURY FOR INTERNATIONAL AFFAIRS - MMILLS, CPLANTIER, AND 
SDONOVAN 
NSC FOR BRYZA AND MCKIBBEN 
 
E.O. 12958: N/A 
TAGS: EFIN, EAID, TU, IZ 
SUBJECT: TURKISH MFA ON BRUSSELS CONFERENCE 
 
REF: SECSTATE 103222 
 
1. (SBU) Summary: Foreign Minister Gul will head Turkey's 
delegation to the Brussels conference.  The GOT does not 
yet have a position on bilateral debt, but is resisting 
outright forgiveness.  MFA officials say progress on 
assistance continues to be on hold until security improves. 
End Summary. 
 
2. (SBU) A/DCM and Econoff delivered reftel talking points 
to MFA Middle East Director General Oguz Celikkol June 3. 
Celikkol said Deputy Prime Minister  and Foreign Minister 
Abdullah Gul will lead the Turkish delegation to the Brussels 
Conference.  In a separate meeting June 6, Turkey,s 
Coordinator 
for Assistance to Iraq Ambassador Koray Targay told ECON/C 
that 
he will accompany Gul, along with Celikkol, Special Envoy for 
Iraq Osman Koroturk, and DDG for the Middle East Safak 
Gokturk. 
Celikkol and his staff claimed they were not well-informed on 
the details of the conference and asked for more information, 
such as plans for a concluding resolution. 
 
Debt 
---- 
 
3. (SBU) On Iraq's $ 1.6 billion debt to Turkey, Celikkol 
said 
that, as far as he was aware, the Iraqi authorities have yet 
to 
approach Turkey requesting a debt restructuring.  Targay said 
that the issue was on the agenda for Prime Minister 
Erdogan,s 
meeting with Iraqi Prime Mininster Jafari during his recent 
visit to Turkey, but he did not know if the two Prime 
Ministers 
discussed the issue.  He thought the Iraqis had raised the 
subject 
with Finance Minister Unakitan, who could only refer them to 
the 
Turkish Treasury (a separate institution not under the 
finance 
minister), which is responsible for debt.  Celikkol and 
Targay 
repeated other Turkish officials' comments that Turkey could 
not 
forgive the debt, although they thought rescheduling might be 
possible.  Per reftel, we said Turkey should consider 
repayment 
terms equivalent to 80% forgiveness.  The officials admitted 
that 
the GOT did not have an official position.  (Comment: We will 
also 
pursue this issue with the Treasury.) 
 
Assistance 
---------- 
 
4. (SBU) Celikkol said Jafari had asked about Turkish plans 
for 
assistance.  Celikkol said the GOT was not yet ready to 
disburse, 
although the Minister might provide some specifics in 
Brussels. 
Targay said Turkey's list of projects (the biggest being 
hospitals 
in Basra and Baghdad) remains unchanged, but that the 
security 
situation has kept them "on hold."  He also confirmed that 
GOT water 
engineers would be traveling to northern Iraq to provide 
advice on 
municipal water distribution.  When ECON/C asked about the 
prospect 
of beginning spending soon, Targay said that MFA officials 
had 
expected the security situation to improve after the election 
but 
lately have been concerned that the situation has been 
worsening. 
He stressed that hospitals need to operate in a stable 
environment. 
Targay also said that a small share of the $50 million 
Turkish pledge 
had already been disbursed, including on training projects 
for Iraqi 
police, diplomats, and healthcare workers. We have asked 
Targay,s 
office for a more precise accounting, which we will report 
when it 
is provided. 
 
Baghdad Minimize Considered. 
MOORE