TURKEY: GUL FOCUSES ON BUSINESS, ARAB LEAGUE IN

C O N F I D E N T I A L ANKARA 000129

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/18/2018
TAGS: PREL ECON EINV ETRD TU EG
SUBJECT: TURKEY: GUL FOCUSES ON BUSINESS, ARAB LEAGUE IN
CAIRO


Classified By: PolCouns Janice G. Weiner for reasons 1.4 (b) and (d)


1. (C) President Abdullah Gul's January 14-16 visit to Egypt
was successful and primarily focused on enhancing the
bilateral economic relationship, according to MFA Levant Desk
Officer Murat Omeroglu. In addition to his meetings with
Egyptian President Hosni Mubarak, PM Ahmed Nazif, FM Ahmed
Aboul Gheit, and the speakers of the Egyptian Upper and Lower
Houses, Gul spoke with Arab League Secretary General Amr
Moussa. The Turkish delegation included Finance Minister
Kemal Unakitan, MFA Deputy U/S for the Americas and Maritime
and Aviation Haydar Berk, MFA Deputy U/S for the Middle East
Feridun Sinirlioglu, and roughly 150 Turkish businessmen.


2. (C) President Gul met one-on-one with President Mubarak on
January 15. Omeroglu said information regarding the meeting
is being kept close hold at the highest levels, but
speculated the two leaders addressed the MEPP and maritime
jurisdiction issues related to undersea border demarcation
around Cyprus. With PM Nazif and FM Gheit, Gul almost
exclusively discussed enhancing the bilateral economic
relationship, including opening the Egyptian market to
Turkish banks and the possibility of Turkish businesses using
Egyptian ports for transiting purposes and shipping companies
instead of the prevalent Italian alternative. Although Gul
commented to the Egyptian press that he would "not discuss
the issue of maritime jurisdiction openly," Omeroglu
confirmed President Gul encouraged FM Gheit not to pursue
undersea border delineation talks with Greece concerning the
area surrounding Cyprus. The lion's share of the
conversations focused on completing the Arab Gas Pipeline.
President Gul underscored the importance of the project and
expressed hope that the section connecting Syria to Turkey
would be completed soon. On the margins, GOT and GOE
representatives signed an information sharing agreement
between the Turkish Cooperation and Development Agency (TIKA)
and the Egyptian Fund for Technical Cooperation in Africa.


3. (C) During his meeting with Amr Moussa, President Gul
advocated for increased cooperation between Turkey and the
Arab League. Omeroglu reported Gul urged Moussa to quickly
establish the Turkey-Arab Forum called for in the MOU signed
in November on the margins of the Iraq Neighbors Conference
in Istanbul. Omeroglu noted the Arab League proposed the
Turkey-Arab Forum as an alternative to Turkey's request for
observer status. Additionally, President Gul expressed GOT
support for the Arab League plan to resolve the Lebanese
political crisis and encouraged Moussa to closely monitor
events surrounding the impending Kirkuk referendum, as it
would "have a greater impact on Arabs than Turkmen."


4. (C) On January 16, President Gul spoke at a ground
breaking ceremony for a Turkish-backed industrial zone in the
October 6 Industrial City located 30 kilometers west of
Cairo. To be built on a 2 million square meter plot of land,
the qualified industrial zone (QIZ) will house up to 125
companies and could result in up to USD 1.5 billion in
investment. Egyptian Embassy POLOFF Sherif Feif explained
the GOE hopes that Turkish companies will establish
state-of-the-art textile factories which could assist in
reviving the declining Egyptian textiles sector and, in turn,
benefit from the QIZ tax exemptions and less expensive labor.

Visit Ankara's Classified Web Site at
http://www.intelink.sgov.gov/wiki/Portal:Turk ey

WILSON