DEMARCHE ON TIED AID BANS: INITIAL TURKISH RESPONSE

UNCLAS ANKARA 007757

SIPDIS


SENSITIVE


STATE FOR EUR/SE, EB/IFD/ODF - KEAT
TREASURY FOR OASIA - MILLS AND GUNARATNE, AND OFFICE OF
TRADE FINANCE
STATE PASS USTR - NOVELLI AND BIRDSEY


E.O. 12958: N/A
TAGS: EFIN ETRD EAID TU OECD EXIM
SUBJECT: DEMARCHE ON TIED AID BANS: INITIAL TURKISH RESPONSE


REF: STATE 215155


Sensitive but Unclassified. Not for internet distribution.



1. (SBU) On November 1, we shared the U.S. proposal to
consolidate and update existing bans on tied aid to CEE and
FSU countries with Turkish Treasury Director General for
Foreign External Relations Ersen Ekren. Ekren's office
generally provides instructions to Turkey's OECD Mission.



2. (SBU) Ekren said his staff would study the proposal
carefully and, after discussing with Turkish Ex-Im Bank, get
back to us before the November 25 Participants meeting. He
noted that Turkey has limited capacity to provide aid of any
sort. The only aid he is aware of to FSU countries is
through Turkish Ex-Im Bank, and it is tied to some extent to
procurement in Turkey.
PEARSON