UNION OF CHAMBERS PRESIDENT BRIEFS AMBASSADOR ON

C O N F I D E N T I A L ANKARA 003397

SIPDIS


STATE FOR E, P, EB/IFD AND EUR/SE
TREASURY FOR OASIA - MILLS AND LEICHTER
NSC FOR QUANRUD AND BRYZA


E.O. 12958: DECL: 05/23/2008
TAGS: PREL ECON TU IZ
SUBJECT: UNION OF CHAMBERS PRESIDENT BRIEFS AMBASSADOR ON
INITIATIVES TO BOLSTER U.S.-TURKEY TIES


(U) Classified by Ambassador W. Robert Pearson. Reasons:
1.5(b,d).



1. (SBU) Influential Union of Chambers of Commerce (TOBB)
President Rifat Hisarciklioglu told the Ambassador May 22
that he had returned from a three-day visit to Washington
with agreement on several specific initiatives to bolster the
bilateral relationship. They include:


- establishing a working group to promote bilateral trade;
- sponsoring a June 2003 meeting on attracting more foreign
direct investment from the United States;
- setting up, in cooperation with the Brookings Institution,
a think-tank in Turkey to study the trans-Aatlantic relations
and Turkey's EU accession; and
- putting together a contact group with CSIS to talk about
how to redefine the strategic relationship.



2. (SBU) Hisarciklioglu said he had also stressed in
Washington that Turkey could and should play a helpful role
in building a stable and prosperous Iraq and in advancing the
Middle East Peace Process. He reported that, following FM
Gul's visit to Israel and the Israeli President's expected
visit to Turkey, Prime Minister Erdogan would visit Israel,
probably in August-September. (Note: We have not heard
officially about an Erdogan visit, but will follow up with
the Foreign Ministry. End note).



3. (SBU) Ambassador expressed appreciation for TOBB's
specific ideas, stressing that Turkey needed to take concrete
steps -- not just offer rhetoric -- to rebuild bilateral
relations. He offered to work with TOBB on the various
initiatives, and stressed that he hoped to see specific ideas
on enhancing trade and U.S. investment in Turkey.



4. (C) On Iraq, Ambassador noted that the large flows of
humanitarian goods already underway indicated that the
Turkey-Iraq trade route was a natural. He suggested that a
scenario in which the U.S. and Turkey saw eye-to-eye on the
development of a new Iraq would prove enormously beneficial
to both the Turkish and the Iraqi economies. On the other
hand, should there be disagreements, the resulting political
tension would have a negative impact on both economies.
Recalling several recent unhelpful statements by members of
Turkey's establishment, he volunteered that -- at this point
-- Americans do not really know where Turkey stands on Iraq.



5. (C) Comment: A steady stream of Turks have been knocking
on the Ambassador's door asking (a) how bad the damage to the
relationship is, and (b) what Turkey needs to do to repair
that damage. Ambassador's consistent message has been that,
while the U.S. still considers Turkey to be a friend,
Turkey's failure to support us on an issue of overwhelming
national interest cannot be ignored. For the relationship to
regain its strength, Turkey (the whole country, not just the
government) needs to stop sniping at us and take positive,
specific steps on Iraq, Cyprus, and the Middle East Peace
Process.
PEARSON