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Cablegate: Turkish Treasury Raises Next Steps On $1 Billion

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 003018

SIPDIS


SENSITIVE


STATE FOR E, P, EUR/SE AND EB
TREASURY FOR U/S TAYLOR AND OASIA - MILLS AND LEICHTER
NSC FOR QUANRUD AND BRYZA


E.O. 12958: N/A
TAGS: ECON PREL TU
SUBJECT: TURKISH TREASURY RAISES NEXT STEPS ON $1 BILLION
AID

Sensitive but unclassified. Not for internet distribution.


1. (SBU) On May 8, Treasury Deputy Undersecretary Aydin
Karaoz raised with Acting DCM the next steps on effecting the
$1 billion in U.S. assistance for Turkey. Karaoz said he had
just returned from the annual EBRD meeting in Tashkent, where
he had briefly discussed the issue with Treasury U/S Taylor.
Karaoz said the GOT needed USG guidance on how to proceed.


2. (SBU) Acting DCM said that, while he had not
instructions from Washington, the logical next step would be
for the GOT to communicate officially its need for the
assistance, and its desire to begin talks. Following that,
the two side could meet in Washington, so the U.S. side could
explain the terms and conditions in the Financial Agreement.


3. (SBU) Karaoz said he would consult with MinState Babacan
and provide the GOT view, probably next week. He also raised
four specific questions. What is our timing for the first
disbursement? Is the northern Iraq cooperation condition a
one-time upfront condition precedent or is it a condition for
each disbursement? Would a USG team be willing to come to
Ankara rather than a GOT team go to Washington? And does the
U.S. offer give the GOT the flexibility to choose the
grant/loan mix the GOT wants, subject to the $8/5 billion
cap?


4. (SBU) Action request: Embassy requests guidance from
Washington agencies on the GOT questions.
PEARSON

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