Cablegate: Turkish Chamber Continues to Promote Business

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

031129Z Aug 05

UNCLAS ANKARA 004504

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: BEXP ECIN ETRD IS PREL TU
SUBJECT: TURKISH CHAMBER CONTINUES TO PROMOTE BUSINESS
COOPERATION WITH ISRAEL AND PALESTINE

REF: ANKARA 2729

1. (U) Summary: Business delegations from Israel, Palestine
and Turkey (the Ankara Forum) met in Jerusalem June 7 and
agreed to move forward with an Israeli proposal to revive
the Erez Industrial Zone in Gaza and restore more than
4,000 jobs to Palestinian workers there. Special Envoy
Wolfensohn
met with Turkish Union of Chambers and Commodity Exchanges
(TOBB) President Hisarciklioglu July 13 in Ankara and
gave his support to the project. The Ankara Forum
delegation will meet again September 21 in Istanbul.
End Summary.

2. (SBU) Business officials from Israel, Palestine and Turkey
came together June 7 in Jerusalem for the second meeting of
the "Ankara Forum" to discuss concrete steps of commercial
cooperation, specifically a proposal by the Israeli
delegation to revive the Erez Industrial Zone in Gaza.
TOBB Foreign Affairs Advisor Mustafa Bayburtlu noted that
the first meeting in April was very difficult, but the
meeting in Jerusalem went smoothly and enjoyed strong
support from the Israeli authorities, including Foreign
Minister Peres. The three delegations agreed to establish
a working group to work out the details of a plan to
establish a tripartite company to take over the industrial
zone, invest in modern infrastructure and attract companies
to set up operations there.

3. (U) Palestinian authorities reported that 200 companies,
including 100 Israeli companies, used to operate in the
zone, providing jobs for more than 5,000 Palestinians.
However, most of the companies left the zone, leaving jobs
for only 600 Palestinians. Bayburtlu said TOBB did a
preliminary feasibility study which showed that the zone is
not big enough now to merit the kinds of infrastructure
investments needed. After the Jerusalem meeting, TOBB
officials visited the zone and determined to go ahead with
a modest plan of small steps to improve the zone followed
by a more exhaustive expert study of options to restore the
zone. The Ankara Forum will meet September 21 in Istanbul,
when TOBB hopes to sign a tripartite MOU committing the
three sides to move forward with the Erez project.

4. (SBU) TOBB President Rifat Hisarciklioglu met World Bank
President Wolfensohn July 13 at Ankara airport to discuss
the Erez project. Wolfensohn apparently stopped in Ankara
only to talk to TOBB about this issue. Bayburtlu said that
Wolfensohn was "very impressed" by the project and pledged
to support it. Turkish press also reported the Wolfensohn
stopover and characterized it as Wolfensohn,s support for
the TOBB project. Bayburtlu added that TOBB is more
concerned about international support than financing and
was pleased with Wolfensohn's support.

5. (SBU) Separately, the press officer at the Israeli
Embassy gave her econoff her view of the Turkish and TOBB
interest. In addition to the broad Turkish foreign policy
interest in the peace process, she said TOBB is also
interested
because they are hoping Turkish firms will get contracts to
work
on a Gaza airport project.

MCELDOWNEY

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