AMBASSADOR'S INITIAL MEETING WITH AK PARTY CHAIRMAN ERDOGAN

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 008108

SIPDIS


E.O. 12958: DECL: 11/08/2012
TAGS: PREL PGOV PINS ECON AA POLITICAL PARTIES
SUBJECT: AMBASSADOR'S INITIAL MEETING WITH AK PARTY
CHAIRMAN ERDOGAN

(U) Classified by Ambassador W.R. Pearson; reasons: 1.5 (b,d).



1. (C) Summary: Ambassador met with victorious AK Party
leader Erdogan for first post-election visit. He
complimented AK on its constructive electoral campaign and
victory and noted U.S. readiness to work with the new AK
government. U.S. seeks stronger bilateral economic ties and
urges AK to follow a market-credible economic policy; will
continue to promote Turkey's EU candidacy; prefers a peaceful
solution on Iraq but expects Turkey's support if UN track
fails; urges AK to help pursue a Cyprus settlement before EU
Copenhagen Summit; and is ready to share information to help
AK formulate its policies. Responding constructively on Iraq
and Cyprus and favorably to the offer of further
consultations, AK chairman Erdogan emphasized the priorities
of EU candidacy; steps to ease economic difficulties; and
government reform and anti-corruption measures. End summary.



2. (C) In a 45-minute call Nov. 7 on victorious AK Party
chairman Erdogan, Ambassador noted that the White House had
welcomed the democratic nature of Turkey's Nov. 3 election
and recognized the overwhelming nature of AK's victory. The
USG looks forward to working with the new government in every
aspect of our strategic relationship.



3. (C) Complimenting Erdogan on the constructive nature of
AK's campaign, which had focused on the five themes of
economic prosperity, EU candidacy, democratic reforms and
human rights, enhancing government efficiency, and tackling
corruption, the Ambassador laid out U.S. views:


--AK's decision to travel to EU capitals to promote Turkey's
candidacy is an excellent initiative. In this regard, the
Embassy would be pleased to provide USG assessments of where
EU member states stand regarding Turkey (Erdogan accepted the
offer readily).


--The U.S. wants to work on developing trade, investment, and
energy relations to help restore Turkey to solid economic
growth. The Turkish markets are rallying on expectation that
AK will follow sound policies, but it is well to note that
the markets could react sharply negatively if they see
negative developments. Once the government is formed, it
could be useful for AK to send party reps to the U.S. to
explain the party's programs and views in Washington and
elsewhere.


--The current GOT has not met commitments to the IMF on the
budget's primary surplus. As a result there is likely to be
a $1 billion additional financing burden which could greet
the new government. AK might want to press the bureaucracy
to take the required steps now to close the gap.


--On Iraq, the UNSC is close to adopting a very firm
resolution which, if backed by world public opinion, could
help achieve peaceful disarmament of Iraq's WMD. Through
close consultations the U.S. has demonstrated that it takes
Turkey's concerns seriously on every matter. We will keep the
GOT fully informed to ensure no surprises and hope to be able
to work as partners on that issue. If in the end we are
unable to get the help we need from the UN, we will look to
our friends for support as we apply the right of self defense
to protect ourselves. The Embassy stands ready to provide
additional details to AK.


--Regarding Cyprus, there is still time before the EU
Copenhagen Summit to find a solution; we will keep AK fully
informed on U.S. thinking; a solution would bring benefits on
a number of other questions.


--President Bush will take advantage of the Prague Summit to
press EU member states on behalf of Turkey's candidacy; if
the new GOT could be in place by the time of Prague, it would
have a strong impact.



4. (C) Congratulating the Republican Party for its success in
U.S. elections and noting the importance to AK of continued
strong relations with the U.S., Erdogan emphasized the
following:


--U.S. support for Turkey's EU candidacy is highly
appreciated. Contrary to his former opposition to the EU, he
now realizes that Turkey must enter (although, he added, the
presence of three million Turks in Western Europe means
Turkey is already there). AK wants to speed up
implementation of all relevant changes, which are supported
by President Sezer as well; a date for accession negotiations
will accelerate the pace of change. AK appreciates what
President Bush is ready to do on Turkey's behalf at Prague;
President Sezer will also lobby vigorously there;
unfortunately, Turkish post-election procedures will not
permit formation of the new GOT by Nov. 22.


--It is incumbent on the new government to remedy the
unemployment and other severe economic difficulties faced by
Turks across the country. This is an enormous
responsibility; indeed, AK must tackle the challenge alone as
a single-party government, one of the disadvantages of
winning such a sweeping victory. In this regard, AK wants
increased trade opportunities in the U.S., not aid. Higher
exports would mean more jobs and growth and enable Turkey to
pay off its IMF debts. AK wants Turkey to be a creditor
country, not a debtor.


--AK sees the need to reestablish mutual confidence among
Turkish institutions; the lack of confidence stems from
corruption, which has reached unimaginable proportions and
against which AK will take serious steps. AK also aims
sharply to reduce the number of ministerial portfolios.
Erdogan will summon AK M.P.s in several days to agree to his
plan to sell off the State-provided housing for M.P.s. As a
further revenue enhancing measure, "one which could plug the
primary surplus gap", AK wants to sell off as much as
possible of the vast State holdings of real estate and
facilities.


--It is essential for AK to make itself known directly, not
allow its image to be set by a tendentious Turkish press. In
this regard, AK would definitely like to discuss arrangements
for its officials to visit Washington even before the
government is established.


--Concerning Iraq, AK agrees that the best solution is a
peaceful one. At the same time, AK wants to see Iraq
disarmed of WMD and shares U.S. unease about the nature of
the Saddam regime. In a similar vein AK would not want to
see another 9/11; neither Islam nor any other religion
condones terrorism; we need a common global platform against
terrorism.


--AK wants to see a just, lasting solution for Cyprus, namely
an equally sovereign bizonal state; if the U.S. uses its
weight, then a solution is possible.



5. (U) Erdogan and the Ambassador showed an easy rapport
during an uncontroversial 15-minute post-meeting press
briefing. AK senior foreign policy advisor/former career
Ambassador Yakis and Embassy polcounselor (notetaker) also
attended the meeting.
PEARSON