TURKEY: PREPARATIONS AND OUTLOOK FOR G-20

C O N F I D E N T I A L ANKARA 001930 SIPDIS E.O. 12958: DECL: 11/06/2018 TAGS: EFIN KSUM PREL TU SUBJECT: TURKEY: PREPARATIONS AND OUTLOOK FOR G-20 FINANCIAL SUMMIT REF: A. ANKARA 1920 ¶B. ANKARA 1898 Classified By: DCM DOUG SILLIMAN FOR REASONS 1.4 B, D ¶1. (C) Summary: DCM and Economic Counselor met November 6 with Turkish Summit Sherpa Selim Kuneralp and MFA Department Head for Multilateral Economic Affairs Serap Ozcuksun to discuss Turkish preparations for the G-20 Summit. Kuneralp said the Prime Minister has not yet decided who will sit with him in the Summit Plenary Session, nor how many ministers will accompany him to Washington. They expect a decision early next week. Ozcuksun said the GOT wants to see a strengthened G-20 financial coordination mechanism as an outcome of the Summit. In reviewing proposals for changes to global financial architecture, Turkey wants to ensure that there are no new barriers created either to trade or to free flow of capital. She indicated that Turkey would also like to see a call for completion of the Doha Round in the Communique. These views are consistent with those of the Turkish Treasury Ministry (see reftel B),which also wants a strengthened G-20 role, with a strengthened IMF serving as the coordination implementation agency. End summary. ¶2. (C) Kuneralp said that Prime Minister Erdogan will arrive at Andrews AFB on November 13 via private plane from New York, but did not yet have an arrival time. The Prime Minister will attend a recption in New York celebrating Turkey's election to the UN Security Council, then continue to Washington for the G-20 meetings. Erdogan has not yet decided which three officials will sit with him during the Plenary Session. Treasury Minister Mehmed Simsek, Deputy Prime Minister for Economic Coordination Nazim Ekren, and Foreign Minister Ali Babacan may all travel with the Prime Minister to the United States. Kuneralp and Treasury Undersecretary Ibrahim Canakci also will join the delegation. Kuneralp said the GOT understands the Plenary is limited to leader plus three, but he does not expect the Prime Minister to decide until early next week which three of these officials will participate with him. (Note: Treasury Minister Simsek told the Ambassador on November 5 that he and Deputy Prime Minister Ekren would participate in the Summit. End note.) ¶3. (C) Ozcuksun said the GOT wants to see a strengthened G-20 financial coordination mechanism as an outcome of the Summit. Turkey sees the G-20 as the right grouping, representing the right economic powers (including Turkey) to address the crisis. MFA and the Treasury Ministry are reviewing proposals for changes to the global financial architecture, which Ozcuksun divided broadly into "evolutionary" and "revolutionary" approaches. Ozcuksun said the GOT wants to ensure that no new barriers to trade or to the free flow of capital are created in response to the financial crisis. Turkey would like to see a call for completion of the Doha Round in the Summit Communique. She also indicated that Turkey believes its 2001 banking sector reforms have prevented the crisis from damaging the Turkish banking sector and will look for an opportunity to offer its experience to other G-20 members. ¶4. (C) Comment: We will continue to press the GOT to decide on its Summit participation. The MFA's views on Summit outcomes are consistent with those we heard from Treasury Undersecretary Canakci (reftel B). Both have emphasized the GOT's preference for a G-20 coordinating mechanism as a Summit outcome. Canakci also wants to see a strengthened IMF that serves as the G-20 coordination implementation agency, but we do not know whether PM Erdogan will endorse those views. End comment. Visit Ankara's Classified Web Site at http://www.intelink.sgov.gov/wiki/Portal:Turk ey WILSON