Identifier
Created
Classification
Origin
03ANKARA326
2003-01-14 11:48:00
CONFIDENTIAL
Embassy Ankara
Cable title:
PRESSING TURKEY ON ECONOMIC REFORM: NEXT STEPS
how-toThis 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 000326
SIPDIS
STATE ALSO FOR EB - A/S WAYNE, E, AND EUR/SE
TREASURY FOR OASIA - LOEVINGER, MILLS, AND LEICHTER
NSC FOR QUANRUD AND BRYZA
E.O. 12958: DECL: 01/14/2008
TAGS: EFIN ECON PREL TU
SUBJECT: PRESSING TURKEY ON ECONOMIC REFORM: NEXT STEPS
REF: ANKARA 0301
Classified by DCM Robert Deutsch. Reason: 1.5 (b,d).
C O N F I D E N T I A L ANKARA 000326
SIPDIS
STATE ALSO FOR EB - A/S WAYNE, E, AND EUR/SE
TREASURY FOR OASIA - LOEVINGER, MILLS, AND LEICHTER
NSC FOR QUANRUD AND BRYZA
E.O. 12958: DECL: 01/14/2008
TAGS: EFIN ECON PREL TU
SUBJECT: PRESSING TURKEY ON ECONOMIC REFORM: NEXT STEPS
REF: ANKARA 0301
Classified by DCM Robert Deutsch. Reason: 1.5 (b,d).
1. (C) Embassy will continue to deliver the economic reform
message (reftel) in meetings with senior government
officials, AK Party leaders, and key parliamentarians. In
these meetings, we will remind the government that its own
bureaucrats (specifically at Treasury) say they need the $1.7
billion IMF disbursement in February, so there is no time to
waste. We expect IMF Deputy Managing Director Anne Krueger
and World Bank Vice President Johannes Lim, who will make
separate visits to Turkey later this week, to make similar
points to Prime Minister Gul, Deputy Prime Minister Sener,
and other top GOT officials. Following these meetings,
Embassy will send in its assessment of where the reform
program stands along with recommendations on any additional
steps we need to consider.
2. (C) The private sector is also pressing the government.
TUSIAD (Turkish Industrialists Association) Chairman Tuncay
Ozilhan yesterday urged the government to stick to the reform
program (septel),and market players tell us they are
vigorously sending the same message. GOT officials tell us
it was market pressure -- in the form of an unsuccessful
Treasury auction -- that led to Prime Minister Gul's
announcement of new fiscal measures last week.
3. (C) The possibility of a substantial bilateral U.S.
assistance package is a complicating factor, as it creates a
clear moral hazard. Embassy has been stressing to Turks
(including in the private sector) that any U.S. assistance
will be conditioned on, among other things, continued
implementation of the reform program and successful
completion of periodic IMF reviews. It is critical that we
stick firmly to that message.
PEARSON
SIPDIS
STATE ALSO FOR EB - A/S WAYNE, E, AND EUR/SE
TREASURY FOR OASIA - LOEVINGER, MILLS, AND LEICHTER
NSC FOR QUANRUD AND BRYZA
E.O. 12958: DECL: 01/14/2008
TAGS: EFIN ECON PREL TU
SUBJECT: PRESSING TURKEY ON ECONOMIC REFORM: NEXT STEPS
REF: ANKARA 0301
Classified by DCM Robert Deutsch. Reason: 1.5 (b,d).
1. (C) Embassy will continue to deliver the economic reform
message (reftel) in meetings with senior government
officials, AK Party leaders, and key parliamentarians. In
these meetings, we will remind the government that its own
bureaucrats (specifically at Treasury) say they need the $1.7
billion IMF disbursement in February, so there is no time to
waste. We expect IMF Deputy Managing Director Anne Krueger
and World Bank Vice President Johannes Lim, who will make
separate visits to Turkey later this week, to make similar
points to Prime Minister Gul, Deputy Prime Minister Sener,
and other top GOT officials. Following these meetings,
Embassy will send in its assessment of where the reform
program stands along with recommendations on any additional
steps we need to consider.
2. (C) The private sector is also pressing the government.
TUSIAD (Turkish Industrialists Association) Chairman Tuncay
Ozilhan yesterday urged the government to stick to the reform
program (septel),and market players tell us they are
vigorously sending the same message. GOT officials tell us
it was market pressure -- in the form of an unsuccessful
Treasury auction -- that led to Prime Minister Gul's
announcement of new fiscal measures last week.
3. (C) The possibility of a substantial bilateral U.S.
assistance package is a complicating factor, as it creates a
clear moral hazard. Embassy has been stressing to Turks
(including in the private sector) that any U.S. assistance
will be conditioned on, among other things, continued
implementation of the reform program and successful
completion of periodic IMF reviews. It is critical that we
stick firmly to that message.
PEARSON