TURKEY'S IRAQ COORDINATOR ON IRAQ FUEL AND IRAQI

C O N F I D E N T I A L SECTION 01 OF 03 ANKARA 004822

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/15/2021
TAGS: PREL ECON EPET ENRG ETRD XF TU IZ
SUBJECT: TURKEY'S IRAQ COORDINATOR ON IRAQ FUEL AND IRAQI
OFFICIALS' RECENT VISITS

REF: A. A) STATE 134147

B. B) ANKARA 4707

Classified By: Ambassador Ross Wilson for reasons 1.4(b),(d)


1. (C) SUMMARY. Turkey's MFA Iraq Coordinator Oguz Celikkol
updated Ambassador on recent Iraq-related developments,
including visits to Istanbul by Iraqi VP Hashimi and seven
Iraqi Turkmen parliamentarians, the latter of which was
designed to promote unity and common purpose among Turkmen
across party and religious lines. Turkey's PKK concerns were
prominent in recent talks with the Iraqis, with PM Erdogan
urging follow-through on the positive decisions recently
taken. FM Gul would like to move ahead with a visit to Iraq,
but Ceikkol asked for advice on logistics and other
practical issues to make this happen. Celikkol would welcome
a visit to Turkey by incoming S/I Ambassador Satterfield.
Ambassador delivered ref A demarche on the SOMO fuel trade
issue. Celikkol believed that an understanding with SOMO may
be near, and Turkish foreign trade undersecretariat staff
subsequently followed up with us. Celikkol also reviewed
Kirkuk issues and progress on a USD 1 milllion assistance
package for the Iraqi military. END SUMMARY.

PKK
---

2. (C) Celikkol confirmed that FM Maliki called PM Erdogan
earlier this month. Maliki outlined the measures Iraq is
taking against the PKK. Erdogan reportedly responded that
Turkey is hearing encouraging news, but that promises need to
be acted upon soon. During his recent visit to Istanbul,
Iraqi VP Hashimi asked for a briefing on the PKK and its
activities in Iraq, which he got immediately prior to seeing
Erdogan. Afterwards, he reportedly said that Iraq should
formally declare the PKK a terrorist organization. Most
people in Baghdad are not aware of PKK activity in Iraq,
Hashimi commented, adding that he will brief other officials
upon his return. He thought it will be easier to take action
against the PKK if it is declared a terrorist organization.


3. (C) Ambassador noted that President Bush had personally
raised the PKK during PM Maliki's July visit to Washington,
and Maliki had responded constructively. One of the prime
benefits of a trilateral discussion mechanism would be to
leverage Iraqi implementation of its PKK-related promises,
the Ambassador said. Celikkol pointed out FM Gul's helpful
comments that morning to the press stressing the high
priority the US is giving to the PKK issue by appointing a
PKK Coordinator.

POSSIBLE FM GUL VISIT TO IRAQ
--------------

4. (C) FM Gul is now leaning strongly toward accepting Iraqi
invitations to visit, and the visit might happen in the fall
-- though no firm decision has been made, Celikkol indicated.
He asked to coordinate closely on security and logistics,
which are complicated by the fact that the Turkish Embassy is
outside of the Green Zone. FM Gul wants to visit more than
Baghdad, although Celikkol did not identify other locations
under consideration. Celikkol stressed that planning is at a
very early stage; Turkey's embassy in Baghdad has not been
involved yet. Any USG thoughts about the practicalities of a
Gul visit to Iraq would be very helpful. Ambassador said he
would notify Embassy Baghdad and seek information that could
be shared about how other recent ministerial visits have been
handed.


5. (C) Ambassador told Celikkol that he had discussed with
incoming S/I Ambassador David Satterfield a visit to Turkey
soon after he takes over as Iraq Coordinator. Should this
not be possible soon, perhaps Celikkol could visit
Washington. Celikkol welcomed an early visit and opined that
Satterfield's work here with the government and media would
be more useful than talks in Washington. He would, however,

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be in the US to attend an Iraq Neighbors foreign ministries
meeting that Turkey hopes will take place on the margins of
the UNGA opening in September.

IRAQI TURKMEN VISIT
--------------

6. (C) Celikkol described in positive terms a recent visit to
Istanbul by seven Iraqi Turkmen parliamentarians. Turkey had
arranged the visit and used it to promote unity of action on
issues of interest to ethnic Turkmen throughout the country,
despite party and religious differences among the members.
The Turks also urged the members to meet with Iraqi
government officials and foreign embassies as a group. Shia
Turkmen members reportedly requested more GOT involvedment in
Iraqi reconciliation. They referred to four sets of meetings
planned by PM Maliki among tribal leaders, non-official
political groups, clergy, and civil society and encouraged
Turkey to host one or more of these dialogue sessions.
Celikkol said Turkey would be prepared to host the tribal
leaders meeting if requested by the Iraqi government.

TURKISH AID TO IRAQ'S MILITARY
--------------

7. (C) Ambassador followed up on the status of Turkey's USD 1
million package for equipping the Iraqi military, which
Celikkol had indicated earlier in the summer was being teed
up for announcement during a high level visit by Iraqis here
or Turks to Baghdad. Celikkol's staff indicated that the
Turkish aid agency TIKA has or will shortly receive funding
and will be making procurements. Iraq's defense and interior
ministers have been invited to Turkey, and these might be an
occasion to make this aid public.

KIRKUK STILL A CONCERN
--------------

8. (C) Both Hashimi and the Turkmen parliamentarians urged
increased international pressure on the Kurds to better
understand Arab and Turkmen concerns regarding Kirkuk's
status, Celikkol said. Tensions are running very high.
Celikkol understood that some have proposed an international
conference on Kirkuk to move the issue forward, and he
endorsed the effort.


9. (C) Celikkol also flagged a potential concern regarding
the composition of a Kirkuk Normalization Committee that
Turkey understands is now being formed. Turkey has heard
that the Turkmen representation may consist of two Shia only,
one of whom is not well-regarded by the Kirkuk Turkmen
community. To succeed in normalizing the situation in
Kirkuk, any such committee should include Turkmen regarded as
representative of the community, and it should include both
Shia and a Sunni Turkmen.

IRAQ FUEL DISPUTE
--------------

10. (C) Ambassador carried out ref A demarche on Iraq fuel
supplies. He stressed that we believe Iraq is largely
complying with the agreements worked out earlier this year to
restore normal fuel trade. PM Maliki is describing the
situation as increasingly desperate. Every Turkish effort
that can be made to resolve outstanding issues and get larger
quantities of fuel moving as quickly as possible will be
important.


11. (C) Celikkol said Maliki and Erdogan discussed the
latter. Turkey wants to be helpful. He understood that
talks with SOMO are making headway and a resolution is near.
He would be meeting with a representative of the Turkish
Foreign Trade Undersecretariat (FTU) shortly and would try to
be helpful. He said that FTU has concerns about how SOMO is
implementing the June agreement.


12. (C) Further to ref B, FTU Director General Sevket Ilgac,
who has been the GOT's main interlocutor with SOMO, has been

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in touch with Maliki advisor Thamir Ghadban. In a note sent
to Ghadban on August 16, the Turks affirmed that deliveries
to SOMO are ongoing and stated their readiness to approve
additional fuel shipments by Turkish companies on the terms
of the MOU agreed in Ankara in February 2006 and reaffirmed
in June 2006. As Ilgac explained to us earlier, the most
important category that SOMO needs to address is "Category B"
that includes shipments made this year. Payment of Category
A, consisting of pre-2006 arrears, is on track. Category C,
which covers disputed pre-2005 deliveries, is subject to
negotiation. Ilgac reiterated that once a letter of credit
covering Category B obligations of about $350 million has
been issued by the GOI, FTU would no longer require that SOMO
contract with the 30 or so companies covered by the MOU and
would be free to work with as many or as few firms as it
desires.


13. (C) Ilgac said that the customs investigation at Habur
Gate is no longer an impediment to deliveries and expressed
appreciation for our recognition of Turkey's efforts to
expedite US military sustainment fuel shipments. He said his
interest is purely commercial. He wants to see Turkish
companies exporting as much fuel as SOMO requires, so long as
the companies -- several of which were nearly put out of
business by SOMO past non-payments -- are protected as agreed
under the MOU. He is disturbed that SOMO's recent requests
seem to ignore agreements made in the MOU and suggested that
if SOMO at least acknowledges those obligations he is
prepared to discuss the details.

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WILSON