Cablegate: Got Responds Positively On Qiz, but Seeks

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

150601Z Apr 04

UNCLAS ANKARA 002158

SIPDIS

STATE FOR E, EB AND EUR/SE
TREASURY FOR OASIA
DEPT PLEASE PASS USTR FOR LERRION
USDOC FOR ITA/MAC/DDEFALCO

E.O. 12958: N/A
TAGS: ETRD TU
SUBJECT: GOT RESPONDS POSITIVELY ON QIZ, BUT SEEKS
CHANGE IN DRAFT LEGISLATION

Ref: (A) STATE 9981 (B) Ankara

1. The GOT sent an official, positive response via
diplomatic note (see para 2) to ref A points on whether
to proceed with consultations with the Congress on
Qualifying Industrial Zones (QIZ) legislation. The
dipnote requests that the QIZ bill drop the clause
allowing the U.S. side to exclude additional sensitive
products, which are not explicitly mentioned in the
bill, from the scope of the QIZ.

2. Begin text of MFA Note No. 2004/EIGY/100158

The Ministry of Foreign Affairs of the Republic of
Turkey presents its compliments to the Embassy of the
United States of America and with reference to the
Latter's Note No: 55, dated 20 January 2004, has the
honor to present herewith a response to the U.S. paper
on the QIZ issue.

The Ministry of Foreign Affairs of the Republic of
Turkey avails itself of this opportunity to renew to
the Embassy of the United States of America the
assurances of its highest consideration.

Ankara, April 13, 2004

Enclosure:

The Turkish Government expects the U.S. Administration
to take the necessary steps vis-a-vis the Congress to
finalize this long-standing issue.

The exclusion of textiles, apparel and leather products
will already minimize the export benefits to be
expected from a QIZ scheme for Turkey.

Therefore it is imperative that at least the "any other
sensitive item to be declared by the President" phrase
should be deleted from the proposed formulation, as
this might constitute a striking deterrent for the
investment dimension.

End text dipnote.

Edelman

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