Danistay Rules Against Cargill Zoning Amendment

UNCLAS ANKARA 001605

SIPDIS


DEPT FOR EB/IFD/OMA - MBOCCHETTI AND EUR/SE
DEPT PLEASE PASS USTR
USDA FOR FAS/ITP HENKE, MEYER, HANSEN
TREASURY FOR OASIA - MILLS AND LECHTER


SENSITIVE


E.O. 12958: N/A
TAGS: EINV EAGR TU
SUBJECT: Danistay Rules Against Cargill Zoning Amendment


Sensitive But Unclassified. Please Handle Accordingly.


Ref: Ankara 608



1. (U) Last week, the Turkish Danistay (Council of State)
upheld a lower Danistay ruling, which struck down the
amendments to the Iznik Lake Environmental Development Plan
which enabled Cargill to build its USD 90 million corn syrup
plant. The Ministry of Public Works, the Prime Ministry,
and Cargill had appealed the lower (6th Department) Danistay
ruling.



2. (SBU) Cargill's Director of Corporate Affairs told us
that the company had expected this Danistay decision, which
does not affect current permits. He said the GOT planned to
appeal the Danistay decision, and that this case, along with
related cases brought by NGOs against the Cargill plant,
would probably remain in the courts until the end of 2005.



3. (SBU) The GOT has promised to submit industrial zone
legislation to Parliament that, in effect, would legitimize
Cargill's operation, despite zoning violations, but the
draft law has languished in the Prime Ministry for several
months. Although some GOT interlocutors (reftel) have
pointed out that this bill may not solve the problem, since
a constitutional amendment might be necessary to allow
manufacturing operations on class 1 agricultural land, we
and Cargill believe its passage would be an important
positive step. Embassy will continue to press the GOT,
including at the Ministerial level, to resolve this
investment problem as swiftly as possible. Edelman