US embassy cable - 03ANKARA1671

C O N F I D E N T I A L ANKARA 001671 
 
SIPDIS 
 
 
STATE FOR EUR/SE (SILVERMAN AND GOELLNER-SWEET), DRL/IL 
(WHITE), LABOR FOR BRUMFIELD 
 
 
E.O. 12958: DECL: 03/18/2013 
TAGS: PREL, PGOV, ECON, EFIN, PINS, TU, ILAB 
SUBJECT: "ISLAMIC" UNION HAK-IS ON IRAQ, LABOR ISSUES IN 
TURKEY 
 
REF: ANKARA 1446 
 
 
(U) Classified by Polcouns John Kunstadter; reasons: 1.5 
(b,d). 
 
 
1.  (C) Summary:  Turkish Islamic-oriented union Hak-Is 
president Salim Uslu expressed:  1) resignation to Turkey's 
eventually joining the coalition against Saddam; and 2) hope 
that Tayyip Erdogan's new government will not make major 
changes to the AK Government's "urgent action plan" 
emphasizing social issues.  Uslu objected to World Bank and 
IMF criticisms of the new Turkish budget and said he 
considered Turkey's biggest policy issues to be reducing 
poverty and increasing employment.  End summary. 
 
 
2.  (C) In a recent meeting with us, Uslu asserted he opposes 
Saddam and supports democracy in Iraq.  But, he wondered if 
the United States is "threatening" Turkey during negotiations 
over potential economic support to the GOT -- and, he said, 
by the specter of a possible independent Kurdish state in the 
post-Saddam environment.  That said, he appeared resigned to 
Turkey's eventually joining the coalition against Iraq.  He 
attributed the GOT's recent tax increases on vehicles and 
real estate as unnecessary, but prompted by budgetary and 
other problems that will come with military action on Iraq. 
He indirectly criticized World Bank and International 
Monetary Fund-imposed constraints on Turkey by lamenting that 
it would be a shame if the GOT neglects social policies as a 
result of "foreign influences." 
 
 
3.  (C) Uslu felt the World Bank, particularly outgoing 
Turkey Country Director Ajay Chhibber "did not have a good 
reaction to Turkey."  He speculated that Chhibber would use 
his farewell message to soften the impact of his criticism of 
the AK Government's 2003 budget as "anti-poor."  He charged 
that the IMF program is making Turks poorer and causing 
Turkey to "collapse from within."  He portrayed the IMF 
approach as "rigidly" focused on debt repayment, including 
interest payments and foreign exchange policies -- all of 
which are also supported by the World Bank.  Uslu further 
noted the recent conference on civil service reform (reftel), 
and expressed satisfaction that the World Bank/Chhibber had 
reversed its previous characterization of Turkish unions as 
an obstacle to development. 
 
 
4.  (C) Hak-Is has a membership of only 310,000 workers but 
is a useful gauge of AK Party's impact among what were 
traditionally right of center voters.  End comment. 
PEARSON