PRIME MINISTER OVERRULES BUREAUCRACY IN SUPPORT OF

C O N F I D E N T I A L ANKARA 005440

SIPDIS

SIPDIS

TREASURY FOR OTI

E.O. 12958: DECL: 09/19/2016
TAGS: KTFN PTER EFIN ETTC TU
SUBJECT: PRIME MINISTER OVERRULES BUREAUCRACY IN SUPPORT OF
AL-QADI

REF: A. SECSTATE 147545


B. ANKARA 5139

C. ANKARA 5001

D. ANKARA 4266

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


1. (C) A distraught MFA Director General for Security
Affairs Hayati Guven (please protect) told us he understood
that Turkish press reports were true that the Prime Ministry
had applied -- on PM Erdogan's personal instructions -- to
withdraw its earlier appeal of the July 20 Danistay (Council
of State) July 20 ruling that invalidated the freeze on Yasin
al-Qadi's assets in Turkey pursuant to UNSCR 1267. The
Foreign Ministry is currently discussing whether or not to
withdraw its separate appeal, which Guven thought probable.
He was not sure of the time line but thought the assets would
be released absent an appeal. He also said the Danistay's
reasoning applied to other cases in which the Council of
Ministers had frozen assets of terrorist financiers.


2. (C) Guven was acutely aware of the likely negative
repercussions the decision would have on Turkey's relations
with the United Nations and on bilateral relations, including
with the United States. Even worse, he worried that
terrorists would view Turkey's financial system as a safe
haven. When we stressed the seriousness of the action, Guven
abjectly replied with rhetorical question, "What can I do
when the Prime Minister has made a decision?" He said he had
alerted MFA U/S Tuygan to the gravity of the situation and
recommended an urgent meeting with Minister Gul as soon as he
returns from the United States to decide on next steps.


3. (C) Guven elaborated on the reasoning in the Danistay's
July 20 decision invalidating the Council of Minister's
freezing of al-Qadi's assets (reftels). He said the court's
reasoning was two-fold: first the court did not feel there
was sufficient evidence in the al-Qadi case. More broadly,
the court cited property rights as guaranteed by the Turkish
Constitution and found that the Government alone did not have
the authority to take away such rights absent either a court
decision or a law. Guven said that he had long recognized
that the Turkish legal regime for freezing assets is flawed,
and had so informed representatives of the 1267 Committee.
He also thought the UN needed to do more to help countries --
he said Turkey was not the only country facing this
predicament -- implement 1267 listings.


4. (C) Comment: Guven (please protect) was very open with us
and made it clear that the decision to withdraw the appeal
came directly from Erdogan, whose personal relationship with
al-Qadi seems to have prevailed over the recommendation of
the bureaucracy (including the Prime Ministry bureaucrat who
signed the appeal). Erdogan and his associates, including FM
Gul need to hear quickly and loudly that this will have
serious consequences for Turkey's relations with the United
States and the rest of the international community that is
struggling to combat international terrorism. Gul's meetings
with NSA Hadley and the Secretary are the first opportunities
to make this clear. Erdogan's meeting with the President is
the next.

Visit Ankara's Classified Web Site at
http://www.state.sgov.gov/p/eur/ankara/

WILSON