US embassy cable - 05ANKARA4504

UNCLAS ANKARA 004504 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: BEXP, ECIN, ETRD, IS, PREL, TU 
SUBJECT: TURKISH CHAMBER CONTINUES TO PROMOTE BUSINESS 
COOPERATION WITH ISRAEL AND PALESTINE 
 
REF: ANKARA 2729 
 
1. (U) Summary:  Business delegations from Israel, Palestine 
and Turkey (the Ankara Forum) met in Jerusalem June 7 and 
agreed to move forward with an Israeli proposal to revive 
the Erez Industrial Zone in Gaza and restore more than 
4,000 jobs to Palestinian workers there.  Special Envoy 
Wolfensohn 
met with Turkish Union of Chambers and Commodity Exchanges 
(TOBB) President Hisarciklioglu July 13 in Ankara and 
gave his support to the project.  The Ankara Forum 
delegation will meet again September 21 in Istanbul. 
End Summary. 
 
2. (SBU) Business officials from Israel, Palestine and Turkey 
came together June 7 in Jerusalem for the second meeting of 
the "Ankara Forum" to discuss concrete steps of commercial 
cooperation, specifically a proposal by the Israeli 
delegation to revive the Erez Industrial Zone in Gaza. 
TOBB Foreign Affairs Advisor Mustafa Bayburtlu noted that 
the first meeting in April was very difficult, but the 
meeting in Jerusalem went smoothly and enjoyed strong 
support from the Israeli authorities, including Foreign 
Minister Peres.  The three delegations agreed to establish 
a working group to work out the details of a plan to 
establish a tripartite company to take over the industrial 
zone, invest in modern infrastructure and attract companies 
to set up operations there. 
 
3.  (U) Palestinian authorities reported that 200 companies, 
including 100 Israeli companies, used to operate in the 
zone, providing jobs for more than 5,000 Palestinians. 
However, most of the companies left the zone, leaving jobs 
for only 600 Palestinians.  Bayburtlu said TOBB did a 
preliminary feasibility study which showed that the zone is 
not big enough now to merit the kinds of infrastructure 
investments needed.  After the Jerusalem meeting, TOBB 
officials visited the zone and determined to go ahead with 
a modest plan of small steps to improve the zone followed 
by a more exhaustive expert study of options to restore the 
zone.  The Ankara Forum will meet September 21 in Istanbul, 
when TOBB hopes to sign a tripartite MOU committing the 
three sides to move forward with the Erez project. 
 
4.  (SBU) TOBB President Rifat Hisarciklioglu met World Bank 
President Wolfensohn July 13 at Ankara airport to discuss 
the Erez project. Wolfensohn apparently stopped in Ankara 
only to talk to TOBB about this issue.  Bayburtlu said that 
Wolfensohn was "very impressed" by the project and pledged 
to support it.  Turkish press also reported the Wolfensohn 
stopover and characterized it as Wolfensohn,s support for 
the TOBB project.  Bayburtlu added that TOBB is more 
concerned about international support than financing and 
was pleased with Wolfensohn's support. 
 
5. (SBU) Separately, the press officer at the Israeli 
Embassy gave her econoff her view of the Turkish and TOBB 
interest.  In addition to the broad Turkish foreign policy 
interest in the peace process, she said TOBB is also 
interested 
because they are hoping Turkish firms will get contracts to 
work 
on a Gaza airport project. 
 
MCELDOWNEY