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


Syria: Economic Decline, Rising Hunger And Surging Humanitarian Needs

Syria’s fragile economy has “suffered multiple shocks” over the past 18 months, with its currency plummeting and joblessness swelling as people struggle to cover their basic needs, the UN Emergency Relief Coordinator told the Security Council ... More>>

OECD: Final Quarter Of 2020 Shows Continued Recovery In G20 International Merchandise Trade

G20 international merchandise trade continued to rebound in the fourth quarter of 2020 ( exports up 7.2% and imports up 6.8%), following the sharp falls seen in the first half of 2020, as lockdown measures affected trade globally. Although growth ... More>>

UN Report: Civilian Casualties Surged After Peace Talks Began In Afghanistan

Monitoring by the UN Assistance Mission in Afghanistan, UNAMA, and the UN Human Rights Office has revealed that despite a drop in civilians killed and injured overall in 2020 there was a rise in civilian casualties following the start of peace negotiations ... More>>

Focus On: UN SDGs

2021: Critical Year To ‘reset Our Relationship With Nature’ – UN Chief

During this time of “crisis and fragility”, the UN chief told the United Nations Environment Assembly on Monday that human well-being and prosperity can be vastly improved by prioritizing nature-based solutions. Painting a picture of the turmoil ... More>>

Paris Agreement: UN Secretary-General António Guterres To Mark U.S. Reentry With Envoy For Climate John Kerry

Watch live at UN Secretary-General António Guterres will join U.S. Special Presidential Envoy for Climate John F. Kerry at an event marking the United States’ reentry into the Paris Agreement this Friday. The discussion with the Secretary-General ... More>>

WeBeliev: Scoop In Conversation With Abhishek Sinha, Founder Of WeBeliev, An NZ Crowdfunding Platform

WeBeliev supports 17 SDGs, launching sector specific campaigns every month Q. What is WeBeliev and why did you start it? A. WeBeliev is a Singapore-registered crowdfunding platform aimed at fundraising for all the 17 Sustainable Development Goals (SDGs) ... More>>