IRAQ DEBT TO TURKEY -- INTERIM RESPONSE

C O N F I D E N T I A L ANKARA 001676 SIPDIS SIPDIS TREASURY FOR INTERNATIONAL AFFAIRS - JROSE AND SDONOVAN E.O. 12958: DECL: 06/28/2012 TAGS: EFIN IZ TU SUBJECT: IRAQ DEBT TO TURKEY -- INTERIM RESPONSE REF: A. STATE 88875 ¶B. ANKARA 1163 AND PREVIOUS Classified By: Economic Counselor Tom Goldberger for reasons 1.4(b) and (d). ¶1. (C) We flagged to Turkish Treasury Under Secretary Ibrahim Canakci that the U.S. would be approaching Turkey again on the Iraq debt issue once a new government is formed. Canakci noted that Turkey continues to meet with Iraq's outside advisors to reconcile Turkish claims on Iraq, now including claims by the Turkish state pipeline company BOTAS, and the state railroad TCDD. Canakci said the advisors came to Ankara very recently. ¶2. (C) Comment: The Turkish Government, including senior technocrats like Canakci, are currently waiting for the elections and the new Government before tackling any new initiatives or difficult issues. Dissatisfaction over PKK issues will also affect the inclination of Turkey to be forthcoming. Visit Ankara's Classified Web Site at http://www.state.sgov.gov/p/eur/ankara/ WILSON