PRESENTING DEPARTMENT REACTION TO MFA VOLUNTARY

UNCLAS ANKARA 002075

SIPDIS


SENSITIVE


STATE FOR EB/CBED AND EUR/SE
NSC FOR BRYZA


E.O. 12958: N/A
TAGS: EPET EWWT PREL SENV TU
SUBJECT: PRESENTING DEPARTMENT REACTION TO MFA VOLUNTARY
PRINCIPLES PROPOSAL

REF: A. (A) STATE 73545

B. (B) ANKARA 1060


(SBU) A/DCM presented Department's reaction (ref A) on the
MFA's voluntary principles proposal to MFA Deputy Director
General for Energy Hakki Akil on April 5. Akil expressed
appreciation for the USG interest and comments. He stressed
that the MFA proposal was not intended in any way to weaken
or contravene the Montreaux Convention, and that the MFA
shared the U.S. view that market forces had to lead pipeline
development. He reiterated that the fundamental purpose of
the proposal was to help the oil companies get out of their
current dilemma, in which they understand the commercial need
to develop bypass pipelines but do not take the initiative
for fear they will end up subsidizing their "free riding"
competitors (who would benefit from the reduced crowding in
the straits). Akil promised to study the Department's
comments in more detail, and looked forward to continuing the
dialogue.
EDELMAN