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 In addition, two flights by foreign carriers recently cancelled because aircraft safety certificates were outdated, i.e., for technical/safety reasons.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