TUSIAD LUNCHEON WITH COMMERCE DEPUTY SECRETARY

C O N F I D E N T I A L SECTION 01 OF 02 ISTANBUL 000542

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DEPARTMENT FOR EUR/SE

E.O. 12958: DECL: 06/12/2017
TAGS: PGOV TU
SUBJECT: TUSIAD LUNCHEON WITH COMMERCE DEPUTY SECRETARY
SAMPSON

REF: A. IST 110


B. ANKARA 1567

Classified By: Consul General Deborah K. Jones for reasons 1.4 (b) and
(d).


1. (SBU) Summary. Deputy Secretary of Commerce David
Sampson, joined by Ambassador Wilson and Consul General, met
with leaders of the Turkish Industrialists, and
Businessmen,s Association (TUSIAD) on June 7 at TUSIAD,s
headquarters in Istanbul. The discussion focused on the
organization's mission and activities, Turkey-U.S. economic
relations, ways to increase foreign direct investment (FDI)
in both countries, and perceptions of the U.S. in Turkey.
End summary.

TUSIAD AND TURKEY,S DOMESTIC ECONOMIC CLIMATE
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2. (SBU) TUSIAD's mission statement declares its
dedication to "promoting public welfare through private
enterprise." Ferit Sahenk, a TUSIAD board member and the
chairman of Dogus Holding, commented that TUSIAD is "one of
the most important actors in Turkish civil society." In the
Turkish-American context, the organization seeks to (1)
strengthen bilateral economic and commercial ties, (2)
increase American FDI in Turkey and Turkish FDI in the U.S.,
and (3) encourage joint business ventures in Turkey and the
Eastern European region generally. TUSIAD pursues its
mission by hosting conferences and seminars; establishing
direct contacts with government officials, business leaders,
and academics; and issuing policy papers. Sahenk explained
that its Washington, D.C. branch, TUSIAD-US, has daily
meetings with the American-Turkish Council (ATC). TUSIAD
firmly advocates Turkey,s accession to the European Union
and maintains an office in Brussels in support of this goal.


3. (SBU) TUSIAD board member Serif Egeli noted that Turkey
has undertaken several reforms in the private sector in
recent years to attract greater FDI. These reforms have paid
off, he said, as evidenced by large investments in Turkey by
General Electric, Citibank, and other major foreign
corporations. In addition, he claimed that Turkey's current
economic policies were formulated by the last government and
simply implemented by the AKP, even though these policies "go
against their (the AKP leadership's) religious beliefs."
Commenting on Turkey,s perceived instability and uncertain
political future, he said that such instability can cause
grave economic problems but that "politics can also give
business a boost." Deputy Secretary Sampson said he was
impressed by the dramatic structural reforms that have taken
place in Turkey in recent years.

TURKEY-U.S. ECONOMIC COOPERATION AND INVESTMENT
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4. (SBU) Observing that "Turkey is still an unknown" in
the U.S., Sahenk said his country needs to better market
itself to American companies. He suggested that steps should
be taken to allow businessmen from both countries "to get to
know each other and each other,s countries," adding that it
was important to educate U.S. companies about the important
role TUSIAD could play in helping them expand into Turkey,s
neighboring countries.


5. (SBU) Egeli said his organization would greatly
appreciate the opportunity to meet American business leaders
in New York, Florida, Texas, and other coastal states with
large ports. He added that "Turkey has moved beyond just
textiles," having made large strides in the areas of
construction and food production, but that this development
had to be made known to American companies. He concluded by
noting the beneficial role the U.S. government could play in
helping to resove the Azeri-Armenian problem, as well as
other utstanding issues between Turkey and Armenia. He sid
the resolution of such problems would allow Trkey to
establish diplomatic and economic ties wth Armenia, leading
to increased trade and FDI fr both countries.


6. (SBU) Deputy Secretary Samson offered the U.S.
government,s assistance in ientifying companies that could
meet with TUSIAD eaders. He also noted the recent dramatic
increse of American FDI in Turkey and welcomed further
Turkish FDI in the United States.

THE UNITED SATES: TURKEY,S NEWEST NEIGHBOR?
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7. (SBU) In respose to a question posed by Deputy
Secretary Sampson regarding Turkish public opinion of the

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United States, Sahenk noted that it is important to
distinguish between anti-Americanism and opposition toward
certain U.S. government policies. In Turkey, he said, the
latter accounts for most negative perceptions of the United
States. He added that apart from hostility engendered by the
Iraq war and PKK violence (which many Turks believe is
condoned if not supported by the U.S.),there is no
widespread anti-American sentiment in the country.


8. (SBU) Egeli opined that Turkey traditionally has
problems with its neighbors, and since the U.S. invasion and
occupation of Iraq, "America has become Turkey,s newest
neighbor." He added that President Bush is perceived as
"worse than Saddam"; when the latter was in power, Turkey at
least had access to Iraq. But now Iraq is isolated and he
claimed that Turkish-Iraqi trade has suffered enormously
because of this.


9. (C) Comment. TUSIAD has traditionally represented
pro-U.S. views and its board members and affiliates generally
have strong U.S. educational and business ties. Recent polls
highlighting Turkish public opinion toward the U.S.
notwithstanding, the continuing popularity of American
brands, stores, movies, and other cultural symbols suggests,
in TUSIAD members' minds, that any hostility toward the U.S.
is directed towards current foreign policies rather than our
essential values or way of life. All agreed there was much
more room for business. End comment.
JONES