THE DEPUTY SECRETARY'S MAY 21 MEETING WITH TURKISH

C O N F I D E N T I A L SECTION 01 OF 03 CAIRO 003268

SIPDIS

E.O. 12958: DECL: 05/29/2016
TAGS: PREL PHUM ECON MOPS TU SU IR IZ EG
SUBJECT: THE DEPUTY SECRETARY'S MAY 21 MEETING WITH TURKISH
PRIME MINISTER RECEP TAYYIP ERDOGAN



1. (U) Classified by: Economic and Political Counselor John
Desrocher, reasons 1.4 (b) and (d)


2. (U) May 21, 2006; 9:30AM; Sharm El Sheikh, Egypt


3. (U) Participants:

U.S.
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The Deputy Secretary
NEA DAS Scott Carpenter
D Executive Assistant Mike Matera
D Senior Advisor Rich Mills
D Special Assistant Christine Davies
Embassy Cairo Kevin Roland (notetaker)

Turkey
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Prime Minister Erdogan
Economic Minister Ali Babajan
Prime Minister's Staff



4. (C) Summary: The Deputy Secretary met with Turkish PM
Erdogan Sunday, May 21, on the margins of the World Economic
Forum in Sharm el Sheikh Egypt. The Deputy Secretary and PM
Erdogan discussed Iraq, Sudan/Darfur, Iran, economic
developments in Turkey, and EU accession talks. End Summary.

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Iraq
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5. (C) Erdogan said Turkey takes pride in the recent
announcement of the formation of the Iraqi government, and
expects to invite PM Maliki to Turkey soon to discuss
bilateral issues and ways in which Turkey can be helpful in
improving Iraq's internal situation. Turkey is highly
concerned about the maintenance of Iraq's territorial
integrity, Erdogan said, and he sees the threat of full-blown
ethnic conflict, aimed at destroying that integrity, growing
every day. This extends to the problem of the PKK, he said,
which requires the commitment of, and close cooperation
between, the U.S., Turkey, and the new Iraqi government.
Erdogan sees an ethnic imbalance growing in Iraq, and cited
the appointment of only one Turkoman (a Shiite) to a
ministerial post as a sign of this trend. Also, he added,
efforts to "modify the demographics" of Kirkuk pose a serious
threat to Iraq's long-term internal security, and posited
that Iraq's oil wealth should be of equal benefit to all of
its citizens.


6. (C) Maintaining his focus on the "Kirkuk problem," Erdogan
said that constitutional reforms efforts will be especially
critical here. The government, he said, should not allow a
demographic structure as that which is proposed, as "Kirkuk
should belong to all Iraqis." "Take a deeper look into
history," he said, "not just to what the Kurds say." He
fears that tensions over the region's demographic make-up
could flare-up in the pre-local-elections period.


7. (C) Regarding the Turkish-Iraqi border, Erdogan said that,
in addition to creating a "soft belly" for terrorist attacks,
having only a single border gate will make it impossible for
Turkey to maintain its logistical support. He said his
concerns over security problems at the gate have been raised
before but no steps have been taken. Internal security of
key political figures is also important, he added, and cited
the murder of Tarek Hashimi's brother and son as an example
of the threats under which public figures live.


8. (C) Erdogan said that Turkey will continue to do what it
can to help the situation in Iraq, and noted police training
and the Istanbul gathering of Sunnis as examples of its
efforts. Erdogan also cited Turkey's role in ISAF in
Afghanistan as the fruit of U.S.-Turkish cooperation and a
declaration of the strategic partnership. Turkey has strong,
fraternal relations with the Iraqi people, particularly in
the north, he said, and needs to maintain these relations to
form the basis of a peaceful region. Turkey will continue to
support the three-pillar security mechanism, he added, and
believes it should function well toward stabilizing the
internal situation in Iraq.

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Sudan/Darfur
--------------


9. (C) Thanking Erdogan for Turkey's efforts thus far in
Darfur, the Deputy Secretary stressed that following the
peace agreement we need to maintain momentum by pressing the
Sudanese government and the rebels to implement the accord,
step up food delivery, and bring together an effective UN
peacekeeping force. Erdogan described how his trip to Darfur
made a strong, personal impression upon him and his
delegation. The horrific sights he witnessed in the Etosha
Camp, in particular, prompted him to begin mobilizing support
upon his return to Turkey in the forms of well drilling, camp
rehabilitation, illumination, and the construction of a
hospital and school. Turkey would pursue these projects in
conjunction with the Turkish Red Crescent society and other
foundations. He expressed his belief that the people of
Darfur must not "lose hope."


10. (C) The Deputy Secretary highlighted that in this
critical time for Darfur security conditions must be
improved. Noting the professionalism of Turkey's military
and its unique position of being both an Islamic state and
member of NATO, the Deputy Secretary called for Turkey's
participation in a UN peacekeeping force. The Prime Minister
agreed to stay in close touch on this point, stating that he
believed a strong, joint effort was required. He added that
he has initiated action in the OIC, pressing for a SecGen
visit to the region. Erdogan said he believed that the
people of Darfur "must not grow accustomed" to their current
predicament lest they become "tools for terror."

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Iran
--------------


11. (C) Responding to the Deputy Secretary's request for his
views on Iran, Erdogan said Iran was "a very difficult
problem," noted how any conflict would have major
implications for Turkey, and said Turkey was "ready to help"
in whatever way it could, including joining UK/German efforts
at arriving at a peaceful resolution to the conflict. Noting
Turkey's strong cultural and economic ties to Iran (including
the purchase of USD 5 billion in natural gas),Erdogan said
he had spoken directly with Ahmedinejad at recent meetings in
Baku and Bali. In both meetings Erdogan said he counseled
the Iranian president that Iran must be fully transparent and
exchange "provoking statements" for more diplomatic language.
In discussing transparency vis a vis the Baradei report,
Erdogan said Ahmedinejad told him that Iran was being
transparent. Erdogan said he told Ahmedinejad that these
concerns were international concerns and that it was the
Iranians responsibility and obligation to overcome them.


12. (C) Responding to the Deputy Secretary's query about
conditions inside Iran, Erdogan asserted that the latest
developments inside Iran showed solidarity, not
decomposition, in Iranian society, and that a dialogue exists
between reformists and the regime. He also noted that Iran's
unique "martyr culture," a culture that is shared by all
Iranians, could not be underestimated, and external threats
are causing this movement to gain ground in a way it has not
since the revolution.


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Economic Developments in Turkey
--------------


13. (C) PM Erdogan described for the Deputy Secretary what he
sees as Turkey's great economic achievements over the last
three-and-a-half years: increased GDP per capita; plunging
nominal interest rates; a shrinking budget deficit as a
percentage of GDP, and sustained economic growth. While
"unpleasant imbalances" remain with regard to trade, Erdogan
said Turkey has begun to intensify its exports (USD 75
billion of a total trade volume of USD 185 billion). He also
cited a leap in FDI volumes, now at USD 10 billion up from
USD 1 billion, but noted the importance that EU accession
negotiations have in this area and in achieving his goal of
achieving USD 10,000 GDP per capita by 2012. Key growth
opportunities exist in the financial services and property
sectors, Erdogan said, and the Turkish government would
continue to push anti-corruption efforts as it "withdraws
from the economy" and assumes the role of regulator rather
than active participant. The Deputy Secretary applauded
Erdogan's efforts and noted that Economic Minister Babajan
must be a very busy man.

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EU Negotiations
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14. (C) In discussing the status of EU accession
negotiations, Erdogan told the Deputy Secretary that Turkey
"would never forget" the support of the U.S., and said he
will intensify efforts to accelerate talks. Erdogan
described Turkey as being "on the verge" of completing the
screening process, but has decided to halt efforts for the
remainder of the Austrian presidency, seeking to push again
once Finland has taken over next term. The Deputy Secretary
said he recognized the challenges that lie ahead, but urged
Erdogan to press forward; saying Turkish accession had
implications well beyond economics. The Deputy Secretary
reaffirmed the U.S. commitment to helping the Europeans
recognize their broader strategic interest in Turkish
membership.


15. (C) On Cyprus, Erdogan said the Turks and Northern
Cypriots "did their best" and "kept their promises" with
regard to the Annan plan, while the Greeks and Southern
Cypriots did not. The Deputy Secretary said that the U.S.
had urged the Southern Cypriots to support the Annan Plan.
Erdogan, stating that the Northern Cypriots had been
"punished," expressed his hope for greater U.S. connections
with, and investment in, Northern Cyprus, and solicited an
invitation for the Northern Cyprus President to visit the
U.S. Erdogan mentioned there were positive developments in
the Northern Cypriot tourism sector, among others, that would
greatly benefit from U.S. involvement.

16. (U) This cable has been cleared by the Deputy Secretary's
party.
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