US embassy cable - 05ANKARA4660

UNCLAS ANKARA 004660 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: BEXP, EINV, TU 
SUBJECT:  CHARGE RAISES MOTOROLA DISPUTE WITH PM 
 
 
SENSITIVE BUT UNCLASSIFIED. 
 
1.  (SBU)  During her August 8 introductory call on Prime 
Minister Erdogan (see septel), the Charge raised 
Motorola's more than $2 billion claim on the failed 
Turkish mobile phone company TELSIM.  She urged that 
SDIF, the GOT bank guarantee fund that has taken control 
of TELSIM, reach an amicable settlement with Motorola as 
quickly as possible.  This would send an excellent signal 
to the foreign investor community.  Erdogan noted that 
the GOT had taken difficult steps to resolve Cargill's 
high-profile business dispute, and agreed that following 
up on his recent meeting with U.S. executives in Idaho, 
he hoped to see more U.S. investment in Turkey.  He said 
that once SDIF had concluded the sale of TELSIM, 
Motorola's case would be resolved. 
 
2.  (SBU)  Comment:  Erdogan, who had opened the meeting 
with a call for greater bilateral trade and investment, 
was clearly aware of the significance of Motorola's 
dispute and the desirability of resolving it quickly. 
His response also suggests that the GOT recognizes that 
resolving Motorola's claim and the effort to sell TELSIM 
to foreign investors are interlinked. 
MCELDOWNEY