Cablegate: Ambassador's Meeting with Dpm Sener On Economic

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

141401Z Jul 03





E.O. 12958: N/A
SUBJECT: Ambassador's Meeting with DPM Sener on Economic
Reform and Investment Climate Issues

1. (SBU) Summary: In his farewell call on Deputy Prime
Minister Sener on July 10, the Ambassador encouraged the GOT
to stick with the economic reform program, emphasizing anti-
corruption and other measures which would help boost foreign
direct investment. The Ambassador also highlighted the
negative effect of the ongoing Motorola dispute on investor
sentiment toward Turkey. Sener reaffirmed Turkey's
commitment to the reform program and to efforts to improve
the investment environment. End summary.

Economic overview

2. (SBU) DPM Sener acknowledged some negative economic
developments, including a recent increase in interest rates.
The strength of the lira has not thus far negatively
impacted foreign trade, but a continued strong lira could
prompt concern in the markets if it causes the current
account deficit to increase.

3. (SBU) Sener reaffirmed Turkey's commitment to the IMF
program, while admitting to problems and delays in
implementation. He continued that the delay in the fifth
review was a mistake, partially attributable to parliament's
internal regulations, which delayed consideration of some
draft legislation.

Investment Climate

4. (SBU) The Ambassador mentioned that Motorola officials
were in Ankara to meet GOT officials on their pending
receivables from Telsim, owned by the Uzan family. He
emphasized that a positive resolution of this case would
improve investor sentiment toward Turkey and reinforce the
GOT's commitment to the rule of law. Sener responded the
Uzans have been in conflict not only with other companies,
but also with Turkish state.

5. (SBU) The Ambassador urged Sener to undertake anti-
corruption activities and other measures to enhance the
investment environment for domestic and foreign companies
alike. He pointed out that Turkey is attracting as little
as 10 percent of its foreign direct investment potential,
despite an educated and hard-working labor force.

6. (SBU) Sener responded that combating corruption was
important to gaining the trust of the citizenry, which would
in turn help efforts to improve tax compliance. He also
said that the GOT Coordination Board to Improve the
Investment Climate Environment, headed by State Minister
Babacan, was working to cut bureaucratic hurdles for the
private sector and to provide a secure legal environment and
economic stability.

© Scoop Media

World Headlines


UN: Visionary ‘Blue Transformation’ Strategy To Enhance Underwater Food Systems

Record levels of fisheries and aquaculture production are making a critical contribution to global food security, the UN Ocean Conference under way in Lisbon, Portugal, heard on Wednesday...
Abu Akleh Shooting: Fatal Shot Came From Israeli Forces, Says OHCHR
Israeli forces were behind the fatal shooting of Al Jazeera journalist Shireen Abu Akleh in the West Bank - not indiscriminate Palestinian firing - the UN human rights office, OHCHR, alleged on Friday... More>>

Ethiopia: Conflict, Drought, Dwindling Food Support, Threatens Lives Of 20 Million

Hunger is tightening its grip on more than 20 million Ethiopians who are facing conflict in the north, drought in the south and dwindling food and nutrition support beginning next month, the UN food relief agency warned on Thursday... More>>

UN Ocean Conference: Opens With Call For Urgent Action To Tackle Ocean Emergency
With climate change, biodiversity loss and pollution exacting a devastating toll on the world’s ocean — critical to food security, economic growth and the environment... More>>

World Vision: Deeply Concerned For Thousands Affected By Afghanistan Quake
World Vision is deeply concerned about the deteriorating humanitarian situation in Afghanistan in the wake of a powerful earthquake in the early hours of this morning... More>>

Malaysia: UN Experts Welcome Announcement To Abolish Mandatory Death Penalty

UN human rights experts* today commended an announcement made by the Malaysian government that it will abolish the country’s mandatory death penalty and encouraged Parliament to take concrete steps to pass the agreement into law... More>>