CHARGE RAISES MOTOROLA DISPUTE WITH PM

UNCLAS ANKARA 004660

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: BEXP EINV TU
SUBJECT: CHARGE RAISES MOTOROLA DISPUTE WITH PM


SENSITIVE BUT UNCLASSIFIED.


1. (SBU) During her August 8 introductory call on Prime
Minister Erdogan (see septel),the Charge raised
Motorola's more than $2 billion claim on the failed
Turkish mobile phone company TELSIM. She urged that
SDIF, the GOT bank guarantee fund that has taken control
of TELSIM, reach an amicable settlement with Motorola as
quickly as possible. This would send an excellent signal
to the foreign investor community. Erdogan noted that
the GOT had taken difficult steps to resolve Cargill's
high-profile business dispute, and agreed that following
up on his recent meeting with U.S. executives in Idaho,
he hoped to see more U.S. investment in Turkey. He said
that once SDIF had concluded the sale of TELSIM,
Motorola's case would be resolved.


2. (SBU) Comment: Erdogan, who had opened the meeting
with a call for greater bilateral trade and investment,
was clearly aware of the significance of Motorola's
dispute and the desirability of resolving it quickly.
His response also suggests that the GOT recognizes that
resolving Motorola's claim and the effort to sell TELSIM
to foreign investors are interlinked.
MCELDOWNEY