MFA's Accepts Almost All of EPC Action Items

UNCLAS ANKARA 000045 SIPDIS STATE FOR E, EB/CBED, EUR/SE AND NEA/NGA TREASURY FOR OASIA - JLEICHTER AND MMILLS DEPT PLEASE PASS USTR FOR CNOVELLI/LERRION FAS FOR ITP/THORBURN USDOC FOR ITA/MAC/DDEFALCO DEPT PASS OPIC - BRIAN TREADWELL DEPT PASS EXIMBANK - RAY ELLIS SENSITIVE E.O. 12958: N/A TAGS: ECON PREL EINV TU SUBJECT: MFA's Accepts Almost All of EPC Action Items Ref: State 345792 ¶1. (SBU) Econoff discussed reftel's updated version of the Economic Partnership Commission's (EPC's) Agreed Action Items with Mehmet Gucuk, MFA's Deputy Director General for Bilateral Economic Affairs, on December 30. Gucuk, who said he was transmitting the Ministry's official views on this after briefing Undersecretary Ziyal, said MFA accepted our latest draft, except for the last sentence of the first investment item concerning quarterly reports by the GOT. He said that the GOT took investment problems seriously and hoped to have some concrete results on at least the Cargill issue. He added that the GOT was willing to meet and update USG representatives on request and would respond to the ACIEP report on investment issues, but did not want to submit to a regular reporting requirement for the USG. Gucuk said MFA would prefer to drop the sentence on quarterly reporting altogether. Alternately, MFA would accept a mutual commitment by both sides to report quarterly on the range of EPC followup items. ¶2. (SBU) Recommendations: Embassy suggests that Washington agree to drop quarterly reporting. We feel that our ongoing contacts with the GOT, and the proposed bimonthly telephone conversations between Undersecretaries Larson and Ziyal, provide adequate means to monitor resolution of disputes. Given the Prime Minister's visit to Washington in late January and the Turkish state holidays on February 2, 3 and 4, post suggests scheduling the first bimonthly call in mid- or late February. Edelman