TURKEY SHARES CONCERNS ON KHANAQIN STABILITY;

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 001722

SIPDIS

DEPT. FOR EUR/SE AND NEA/I

E.O. 12958: DECL: 09/26/2018
TAGS: PREL PGOV TU IZ
SUBJECT: TURKEY SHARES CONCERNS ON KHANAQIN STABILITY;
STILL PLANS TO HOST IRAQ INVESTMENT CONFERENCE THIS FALL

Classified By: Pol Counselor Daniel O'Grady for reasons 1.4(b,d)


1. (C) SUMMARY: Turkey is as concerned as the United States
about stability in Iraq in light of events in recent weeks in
the Khanaqin area of Diyala Province and the stand-off
between Peshmerga and the IAF, according to MFA Iraq Desk
Officer Can Oguz. The GOT has no intention of taking actions
that could contribute to or exacerbate Kurd-Arab tensions in
Iraq. The focus of Iranian concerns expressed to GOT Special
Envoy for Iraq Murat Ozcelik during his recent visit to
Tehran was on the continued presence of U.S. troops in Iraq,
not on arriving at some form of agreement or common cause
vis-a-vis the future status of Kirkuk or Iraqi Kurdish
autonomy. Ozcelik remains committed to meeting directly with
KRG President Barzani in Baghdad as soon as possible, though
GOT officials continue to have no success in scheduling the
meeting. Turkey still hopes to host an Iraq Investment
Conference this Fall. Ozcelik spoke with Iraqi VP Abdul
Mehdi about this during his recent visit to Baghdad, but much
needs to be done if they are to be successful in attracting
sufficient attention from international investors. The GOT
also wants to move ahead with the first meeting of the
Turkey-Iraq Strategic Cooperation Council soon. FM Babacan
was to have raised this with FM Zebari in a meeting in New
York this week. Ozcelik should be in Ankara the week of
October 6 and able to meet with S/I Satterfield in Ankara.
END SUMMARY

Iraq's Stability Key for Turkey
--------------


2. (C) MFA Iraq Desk Officer Can Oguz told us September 25
that Turkey is concerned about the growing schism between
Kurds and Arabs in Iraq and noted such a development is not
in Turkey's interests. Following a lengthy discussion on
recent events in the Khanaqin area of Diyala Province and the
stand-off between Peshmerga and the IAF, we underscored the
importance for Turkey to avoid taking actions in its fight
against PKK terrorists along its border with Iraq that could
contribute to or exacerbate tensions in Iraq. Oguz responded
that Iraq's stability remains critically important for the
GOT and Turkey understands the delicate balance that must be
maintained.

GOT Still Seeking Barzani Meeting
--------------


3. (C) Noting Turkey's struggle with PKK terrorism would be
much easier if the KRG took more forceful steps to counter
the PKK's presence in northern Iraq, Oguz said Murat Ozcelik
continues to seek a meeting with KRG President Massoud
Barzani in Baghdad. Given that the latter does not travel to
Baghdad often, this has proven difficult. While they are a
bit frustrated the meeting has not yet occurred, they will
continue efforts to make it happen as soon as possible.

Ozcelik in Tehran...A Turkey-Iran Deal?
--------------


4. (C) Oguz said the read-out he had seen from Ozcelik's
meetings in Tehran in early September indicate discussions
revolved principally around Iran's concerns regarding a
continued U.S. troop presence in Iraq and Turkish views as to
whether a SOFA between the U.S. and Iraq would be
successfully concluded. Oguz was not aware of any
discussions that hinted at an effort to strike an agreement
on limiting Iraqi Kurdish autonomy or ensuring that Kirkuk
did not become part of the Iraqi Kurdish region. Oguz said
that is an issue for Iraqis to decide. (NOTE: We will seek to
gain further insights into Ozcelik's Tehran visit once he
returns to Ankara to determine the degree to which rumors of
an Iranian-Turkish "deal" reflect reality or Iranian efforts
to demonstrate a level of coordination and cooperation with
Turkey that does not exist. END NOTE)


ANKARA 00001722 002 OF 002



Investment Conference on Iraq
--------------


5. (C) Oguz indicated Ozcelik had discussed with VP Abdul
Mehdi Turkey's willingness to host an international
conference promoting investment in Iraq during Ozcelik's last
visit to Baghdad in early September. The GOT realizes the
enormity of the task to pull together a successful conference
and that its proposed early November time frame is quickly
becoming a target the Turks will not be able to meet. Oguz
said Ozcelik will need to follow-up yet again with Abdul
Mehdi to get the GOI's firm commitment to move forward.

TU-IZ Strategic Cooperation Council
--------------


6. (C) FM Babacan was to have proposed to FM Zebari on the
margins of UNGA this week to hold the first meeting of the
Turkey-Iraq Strategic Cooperation Council sometime in October
in Turkey. This would be the first meeting of the mechanism
proposed by PM Erdogan during his July visit to Baghdad to
discuss a wide-ranging number of bilateral issues at the most
senior levels of the two governments.

Satterfield-GOT Consultations
--------------


7. (C) We noted the possibility S/I Satterfield will be in
Erbil October 3-5 and then continue on to Ankara for
consultations with GOT officials sometime during the week of
October 6. Oguz said Ozcelik should be in the office most of
that week before traveling to Istanbul October 11 for the
expanded neighbors energy working group meeting and
subsequent October 12 US-TU-IZ Iraqis gas trilateral. In
light of the closure of the Turkish government (and Embassy
Ankara) for the end of Ramazan holiday during the week of
September 29, Oguz asked for a proposed date for the visit of
S/I Satterfield as soon as possible.




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WILSON