"ISLAMIC" UNION HAK-IS ON IRAQ, LABOR ISSUES IN

C O N F I D E N T I A L ANKARA 001671 SIPDIS STATE FOR EUR/SE (SILVERMAN AND GOELLNER-SWEET),DRL/IL (WHITE),LABOR FOR BRUMFIELD E.O. 12958: DECL: 03/18/2013 TAGS: PREL PGOV ECON EFIN PINS TU ILAB SUBJECT: "ISLAMIC" UNION HAK-IS ON IRAQ, LABOR ISSUES IN TURKEY REF: ANKARA 1446 (U) Classified by Polcouns John Kunstadter; reasons: 1.5 (b,d). ¶1. (C) Summary: Turkish Islamic-oriented union Hak-Is president Salim Uslu expressed: 1) resignation to Turkey's eventually joining the coalition against Saddam; and 2) hope that Tayyip Erdogan's new government will not make major changes to the AK Government's "urgent action plan" emphasizing social issues. Uslu objected to World Bank and IMF criticisms of the new Turkish budget and said he considered Turkey's biggest policy issues to be reducing poverty and increasing employment. End summary. ¶2. (C) In a recent meeting with us, Uslu asserted he opposes Saddam and supports democracy in Iraq. But, he wondered if the United States is "threatening" Turkey during negotiations over potential economic support to the GOT -- and, he said, by the specter of a possible independent Kurdish state in the post-Saddam environment. That said, he appeared resigned to Turkey's eventually joining the coalition against Iraq. He attributed the GOT's recent tax increases on vehicles and real estate as unnecessary, but prompted by budgetary and other problems that will come with military action on Iraq. He indirectly criticized World Bank and International Monetary Fund-imposed constraints on Turkey by lamenting that it would be a shame if the GOT neglects social policies as a result of "foreign influences." ¶3. (C) Uslu felt the World Bank, particularly outgoing Turkey Country Director Ajay Chhibber "did not have a good reaction to Turkey." He speculated that Chhibber would use his farewell message to soften the impact of his criticism of the AK Government's 2003 budget as "anti-poor." He charged that the IMF program is making Turks poorer and causing Turkey to "collapse from within." He portrayed the IMF approach as "rigidly" focused on debt repayment, including interest payments and foreign exchange policies -- all of which are also supported by the World Bank. Uslu further noted the recent conference on civil service reform (reftel), and expressed satisfaction that the World Bank/Chhibber had reversed its previous characterization of Turkish unions as an obstacle to development. ¶4. (C) Hak-Is has a membership of only 310,000 workers but is a useful gauge of AK Party's impact among what were traditionally right of center voters. End comment. PEARSON