Identifier
Created
Classification
Origin
03ANKARA3055
2003-05-09 14:25:00
CONFIDENTIAL
Embassy Ankara
Cable title:  

MFA DEMARCHE ON OFF CONTRACTS

Tags:  PREL ETTC TU IZ 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L ANKARA 003055 

SIPDIS


STATE FOR E, EB, EUR/SE, NEA/NGA
NSC FOR QUANRUD AND BRYZA


E.O. 12958: DECL: 05/09/2013
TAGS: PREL ETTC TU IZ
SUBJECT: MFA DEMARCHE ON OFF CONTRACTS

REF: A. ANKARA 2813

B. STATE 122029


Classified by Acting EconCouns Bob Silverman, Reason 1.5 (b,d)


C O N F I D E N T I A L ANKARA 003055

SIPDIS


STATE FOR E, EB, EUR/SE, NEA/NGA
NSC FOR QUANRUD AND BRYZA


E.O. 12958: DECL: 05/09/2013
TAGS: PREL ETTC TU IZ
SUBJECT: MFA DEMARCHE ON OFF CONTRACTS

REF: A. ANKARA 2813

B. STATE 122029


Classified by Acting EconCouns Bob Silverman, Reason 1.5 (b,d)



1. (C) Head of Department for Middle East Bilateral Economic
Affairs Akif Ayhan called in econoff together with the
British DCM May 8 to deliver the following demarche regarding
Turkey's pending Oil for Food (OFF) contracts. Ayhan said he
had delivered the same demarche earlier to the Russian,
Chinese, French, and Germans (because Germany chairs the 661
Committee) together, noting that the demarche was tailored to
what the GOT considered to be "like-minded" countries on this
issue. Ayhan said Turkey's UN mission would deliver the same
points in New York in the coming days.



2. (SBU) Following is the text of the non-paper give to
econoff:


--We witness an emerging understanding in the Security
Council for a review of Iraq's sanctions regime.


--If sanctions are suspended, phased out or removed, this
will impact on the commercial interests and commitments
emanating from the implementation of the UN Oil for Food
(OFF) Programme.


--Turkey expects that the rights of the Turkish companies
will be effectively preserved in this process.


--Many companies belonging to various countries have several
contracts in the "pipe-line" under the OFF Programme. An
arrangement is needed in the UN to make such contracts
operative.


--We deem it crucial to take into account the following
points during the consideration of the OFF Programme at the
UN Security Council:


-All pending contracts without any exception already signed,
financed, approved or being processed within the framework of
the OFF Programme must be kept under the UN guarantee and
gradually executed. This would be assured by a new UNSC
Resolution. In particular, any nullification as regards the
execution of those contracts with Letters of Credit will
adversely affect the companies concerned.


-The current practice on priority contracts and goods under
the UN Resolution no 1472 should be carried out in an
evenhanded manner. In this respect, Iraq Programme Office
(OIP) and other UN agencies should make sure that the
priority criteria are applied objectively. (The Turkish
companies' OIP-approved contracts containing priority items
amount to 700 million US dollars of which only 73 million US
dollar worth portion is listed on the UN priority contracts.)


-Deliveries to Iraqi private sector companies and to
international organizations should be subject to UN
authorization any more. Such a modification presents urgency.


Apart from the foregoing, war reparation claims of
several companies for the losses incurred due to the Iraqi
military conflict have to be addressed.



3. (C) Comment: Ayhan also said the GOT was interested in the
latest draft text on the lifting of sanctions. Ref b
arrived after this meeting. We will meet with Ayhan early
next week to deliver ref b points.
PEARSON