US embassy cable - 03ANKARA1473

UNCLAS ANKARA 001473 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR E, P, EUR/SE AND EB 
TREASURY FOR U/S TAYLOR AND OASIA - MILLS 
NSC FOR QUANRUD AND BRYZA 
 
 
E.O. 12958: N/A 
TAGS: EINV, ECON, PREL, TU 
SUBJECT: AMBASSADOR RAISES FOREIGN INVESTMENT ISSUES WITH 
FINANCE MINISTER, WHO AGREES TO MEET WITH U.S. COLA 
COMPANIES 
 
Sensitive but unclassified, and not for internet 
distribution. 
 
 
1. (SBU) AMB paid an office call on Finance Minister Kemal 
Unakitan March 7 largely to discuss the status of the 2003 
budget (septel).   AMB also raised the need to improve the 
foreign investment climate in Turkey, and wanted to cite 
several examples. 
 
 
2.  (SBU) AMB said the Citibank General Manager in Turkey had 
praised Unakitan's instrumental role in resolving a tax issue 
involving Citibank's foreign portfolio investors.  AMB said 
he wanted to add his appreciation to the minister.  His 
intervention had allowed Citibank's important economic 
activity in Turkey to continue.  Unakitan, clearly pleased, 
said he was only doing his job. 
 
 
3.  (SBU) AMB then raised the long-standing tax treatment of 
cola beverage producers. AMB stressed the differing tax 
treatment of Cola versus other beverages, and how the 48 
percent tax rate on cola was stifling investment and limiting 
employment in this field.  Unakitan replied that he was aware 
of the problem.  He had met with U.S. cola companies briefly 
at Davos in January.  He told the AMB he would meet the cola 
companies in Ankara and give the problem a more extended 
hearing.  AMB thanked him and said he would pass this onto 
the U.S. cola producers. 
PEARSON