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