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Cablegate: A/S Sullivan with Mfa U/S Apakan On Turkey's

VZCZCXRO0562
PP RUEHDA
DE RUEHAK #2422/01 2710815
ZNR UUUUU ZZH
P 280815Z SEP 07
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 3851
INFO RUEHIT/AMCONSUL ISTANBUL 3348
RUEHDA/AMCONSUL ADANA 2332
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 ANKARA 002422

SIPDIS

SIPDIS
SENSITIVE

DEPT PLEASE PASS USTR FOR MMOWREY
DEPT PLEASE PASS USTR FOR DSTEIN
DOC/MAC FOR CRUSNAK

E.O. 12958: N/A
TAGS: ETRD ECON ENRG TU
SUBJECT: A/S SULLIVAN WITH MFA U/S APAKAN ON TURKEY'S
ECONOMIC SUCCESS, EPC FOLLOW-UP

REF: ANKARA 555

1. (SBU) Summary: During a September 20 meeting with MFA
Undersecretary Ertugrul Apakan, EEB A/S Sullivan raised the
progress made on action items identified at the February
U.S.-Turkey Economic Partnership Commission (EPC), an event
showcasing Turkey that A/S Sullivan plans to host on the
margins of the October World Bank/IMF meetings in Washington,
DC, Reconstruction Opportunity Zones (ROZs) in Afghanistan
and Pakistan, updating the U.S.-Turkey Bilateral Investment
Treaty (BIT), and possible additional areas for U.S.-Turkish
cooperation. End summary.

U.S.-Turkish Industrial Cooperation: JPOs and ROZs
--------------------------------------------- ------

2. (SBU) Both sides agreed that we have accomplished many of
the items on the EPC Action Plan, but that work remains to be
done before next year's meeting. A/S Sullivan proposed early
2008 in Washington, DC for the next EPC meeting. A/S
Sullivan outlined his recent meeting in Washington, DC with
Turkish Union of Chambers and Commodities Exchanges (TOBB)
President Rifat Hisarciklioglu. During that meeting, they
discussed the concept of Turkey-U.S. Joint Production
Opportunities (JPOs), an idea that originated at the February
EPC Meeting. A/S Sullivan explained two possible places for
cooperation, first in the existing West Bank Territory and
potential established free trade zones there, and second in
newly established Reconstruction Opportunity Zones in
Pakistan and Afghanistan, on which A/S Sullivan is working on
behalf of President Bush to gain approval by Congress. Both
areas would provide duty-free exports to the U.S. on a wide
range of products, and A/S Sullivan welcomed Turkish
participation in these areas.

Science & Technology Agreement and Education Exchanges
--------------------------------------------- ---------

3. (SBU) U/S Apakan mentioned the latest draft of the
U.S.-Turkey Science and Technology Agreement, which was
presented to the MFA in March and from which we have not yet
gotten a response. U/S Apakan explained that the MFA is
still working with the Scientific and Technological Research
Council of Turkey (TUBITAK) to get their feedback and buy-in
into the agreement, but that he thought such an agreement
would be very important. He asked about the two items on the
EPC Action Plan related to university exchanges and U.S.
professor visits. The DCM updated them on the work PAO has
done to identify and inventory existing exchange programs
with Turkish universities. In addition, A/S Sullivan
mentioned U/S Hughes' bureau s interest in a potential visit
of university professors to Turkey and promised to follow-up
on this issue.

Transportation and the "New Silk Road"
--------------------------------------

4. (SBU) U/S Apakan mentioned Turkey's concentration on
improving infrastructure in the region and creating a "new
silk road" that would provide efficient land transportation
from China to Brussels. Apakan focused on transportation to,
from and through the Central Asian (the "Turkic") Republics,
Russia, and the Caucuses. He also mentioned the need for
greater maritime transportation cooperation between Black Sea
and Mediterranean countries. Turkey is currently discussing
how to combine land, sea and aviation transportation, energy
and water in the region and Apakan appealed for U.S.
investment and cooperation in these areas. A/S Sullivan
spoke of Secretary Rice's interest in the region and
developing land transportation not just east to west but also
north to south from Central Asia to India. He mentioned some
of the infrastructure projects currently supported by the
U.S., including bridges and road construction, a
trans-Caspian pipeline feasibility study, and USTDA's Central
Asian telecom conference, an action item on the EPC that
Turkish representatives also attended.

Turkey Event on the Margins of October Bank/Fund Meetings
--------------------------------------------- ------------

5. (SBU) A/S Sullivan described his vision for the Turkey

ANKARA 00002422 002 OF 002


event he plans to host on the margins of the World Bank/IMF
Meetings in October. He wants to give senior Turkish
officials the opportunity to tell their success story on
battling inflation while achieving economic growth to senior
U.S. officials and to U.S. businessmen. A/S Sullivan
mentioned a similar event sponsored in part by TOBB in New
York prior to the meetings and hoped that his event in
Washington, DC would expand on and complement this message.
During a September 20 meeting with Turkish Treasury U/S
Ibrahim Canakci, he invited new State Minister for the
Treasury Mehmet Simsek to speak at the event. A/S Sullivan
also mentioned his interest in having Central Bank Governor
Durmus Yilmaz and Investment Promotion Authority head
Alpaslan Korkmaz speak if available. Apakan expressed the
MFA's support for this event and added that in addition to
the Turkish officials A/S Sullivan had mentioned, Finance
Minister Kemal Unakitan would also be in Washington, DC for
the Bank/Fund meetings.

Renegotiating the BIT
---------------------

6. (SBU) A/S Sullivan raised the U.S.'s desire to upgrade the
existing U.S.-Turkey Bilateral Investment Treaty (BIT). He
explained that upgrading the existing treaty in line with the
U.S. model BIT would make Turkey more attractive to U.S.
investors because of the protection it provides. He agreed
to share a model of the new BIT with the MFA.

7. (U) This cable was cleared by A/S Sullivan.

Visit Ankara's Classified Web Site at
http://www.state.sgov.gov/p/eur/ankara/

WILSON

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