U.S.-TURKEY FINANCIAL AGREEMENT

C O N F I D E N T I A L ANKARA 003123

SIPDIS


STATE FOR P, E, EUR/SE
TREASURY FOR OASIA - LOEVINGER, MILLS, ADKINS
NSC FOR BRYZA AND MCKIBBEN


E.O. 12958: DECL: 06/07/2014
TAGS: EFIN EAID PREL TU
SUBJECT: U.S.-TURKEY FINANCIAL AGREEMENT


REF: SECSTATE 122407


(U) Classified by Ambassador Eric S. Edelman. Reasons:
1.4(b, d)



1. (C) Per reftel instructions, Ambassador reiterated to MFA
U/S Ziyal June 4 that the U.S. considered negotiations on
changes to the language in the financial agreement to be
over. Referring to local press reports from that morning
quoting Prime Minister Erdogan as saying that Turkey would
not accept the $8.5 billion because of the political
conditions attached to it, Ambassador asked whether the USG
should consider the PM's statement Turkey's official answer.



2. (C) Ziyal, who said he had not seen the press reports,
responded "I don't think so," but promised to check with the
Prime Minister. He confided that he had recommended to
Foreign Minister Gul that Turkey accept the latest USG
language, and understood Gul was still discussing this with
State Minister Babacan.



3. (C) Ambassador noted that Treasury U/S Taylor had told
Minister Babacan earlier in the week that some Members of
Congress had begun to ask whether the USG should rescind the
loan offer, in light of Turkey's reluctance to accept it.
U/S Taylor had argued against rescinding the package, and had
told Babacan that, while he did not see an immediate threat
of Congress pulling the money back, Turkey could not wait
forever. Ambassador told Ziyal that he could not say how
long the money would remain available, particularly in light
of further GOT negative statements about it.
EDELMAN