TURKEY APPROVES ECONOMIC MEASURES AGAINST NORTHERN

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 002708

SIPDIS

ANKARA PASS ADANA

E.O. 12958: DECL: 11/02/2017
TAGS: KFPC ECON ETRD ETTC PREL EAIR TU
SUBJECT: TURKEY APPROVES ECONOMIC MEASURES AGAINST NORTHERN
IRAQ, DELAYS IMPLEMENTATION

REF: ANKARA 2680

Classified By: ECONOMIC COUNSELOR DALE EPPLER FOR REAONS 1.4 B AND D


1. (C) Summary: The Turkish Council of Ministers approved a
set of economic measures directed against the PKK and
Northern Iraq on October 31, but did not announce what
measures they had approved. The GOT said November 2 that it
has not yet implemented any of the approved economic
measures. Turkish Civil Aviation authorities and MFA insist
that Turkey's airspace remains open for flights to Northern
Iraq, despite several press reports to the contrary, but note
that some flights have been cancelled due to licensing and
safety issues. Electricity exports continue, and truck
traffic through Habur Gate remains at normal levels. End
summary.


2. (U) Following the Council of Ministers meeting on October
31, Deputy Prime Minister Cemil Cicek announced that
"military, political, diplomatic and economic measures are
being taken simultaneously. The targets of these measures
are the terrorist organization and those groups which are
supporting, aiding and abetting it." He added that "neither
people living on the other side of the border, nor our people
who are earning their livings thanks to that border, should
suffer hardship as a result of these precautions. The
measures we are taking, including the economic ones, will be
in line with this sensitivity." But he gave no specifics on
what measures the ministers considered or approved, or on
when they might be implemented.

Civil Aviation
--------------


3. (C) The Civil Aviation Directorate denied a November 2
press report that it had notified the European Civil Aviation
Agency that Turkey's airspace may not always be open in the
future for flights to Northern Iraq due to heavy traffic and
other technical reasons. Similarly, MFA DDG for Aviation
Basat Ozturk told us that there currently are no measures or
orders in place restricting flights of any carriers to
Northern Iraq. Flights are continuing. He said that Turkish
firm Tarhan Towers has stopped flying temporarily while its
new application is being reviewed. In addition, two flights
by foreign carriers recently cancelled because aircraft
safety certificates were outdated, i.e., for technical/safety
reasons. Turkey has not yet implemented any of the economic
sanctions discussed by the cabinet, he emphasized.

Habur Gate
--------------


4. (SBU) As of 0900 on November 2, Habur Gate remains open
and fully operational. We have not received any information
indicating that Habur is being restricted or that inspections
are slowing traffic more than normal. Truck traffic is
normal, with about 800 trucks crossing in each direction each
day.

Electricity
--------------

5.(SBU) Kartet company Director Nuray Atacik told us that
Kartet's power plant outside of Silopi, which supplies all of
Turkey's electricity exports to Iraq, is operating normally,
with Iraqi fuel oil still coming north to run the plant, and
electricity still flowing south. She noted that the plant
could not operate if Habur Gate was closed, because the plant
operates on a special fuel oil unavailable in Turkey in the
quantities they need.

Trade Restrictions
--------------


6. (SBU) Turkish-Iraqi Business Council Director Ercument
Aksoy said that he has not been informed of any proposed or
pending controls on trade with Northern Iraq. He doubts the
accuracy of press reports indicating the GOT plans to cut off
cement exports, because the major consumers of Turkish cement
in Northern Iraq are Turkish construction companies. Aksoy
expects the GOT will begin to implement economic measures
only after Prime Minister Erdogan meets with President Bush
on November 5.


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

WILSON