Identifier
Created
Classification
Origin
09ANKARA1781
2009-12-15 15:29:00
CONFIDENTIAL
Embassy Ankara
Cable title:
TURKEY: SUPPORT FOR "TRNC" CARRIES HIGH PRICE TAG
how-toVZCZCXRO6641 OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSL RUEHSR DE RUEHAK #1781/01 3491529 ZNY CCCCC ZZH O 151529Z DEC 09 FM AMEMBASSY ANKARA TO RUEHC/SECSTATE WASHDC IMMEDIATE 1482 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RHMFISS/EUCOM POLAD VAIHINGEN GE PRIORITY RUEHAK/USDAO ANKARA TU PRIORITY RUEUITH/TLO ANKARA TU PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUEUITH/ODC ANKARA TU PRIORITY RUEKJCS/JOINT STAFF WASHDC//J-3/J-5// PRIORITY RHMFISS/39ABG CP INCIRLIK AB TU PRIORITY RHEFDIA/DIA WASHDC PRIORITY RHEHAAA/NSC WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 001781
SIPDIS
DEPARTMENT FOR EUR/SE
E.O. 12958: DECL: 12/14/2019
TAGS: PREL PGOV TU
SUBJECT: TURKEY: SUPPORT FOR "TRNC" CARRIES HIGH PRICE TAG
REF: A. ANKARA 1718
B. NICOSIA 363
Classified By: POL Counselor Daniel O'Grady, for reasons 1.4(b,d)
C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 001781
SIPDIS
DEPARTMENT FOR EUR/SE
E.O. 12958: DECL: 12/14/2019
TAGS: PREL PGOV TU
SUBJECT: TURKEY: SUPPORT FOR "TRNC" CARRIES HIGH PRICE TAG
REF: A. ANKARA 1718
B. NICOSIA 363
Classified By: POL Counselor Daniel O'Grady, for reasons 1.4(b,d)
1. (C) SUMMARY. Turkey's financial aid to the "TRNC" is
roughly $600 million annually -- one third of the "TRNC"
budget. Ankara routinely grouses about what it perceives as
the Turkish Cypriots' lack of fiscal responsibility, but
would never consider turning off this funding tap and does
not view the potential savings of a Cyprus solution as a
relevant factor in the current negotiations. END SUMMARY.
2. (C) "TRNC Ambassador" Namik Korhan recently passed us a
copy of the 2010 "TRNC" annual budget, contained in fiscal
legislation currently being reviewed by the Turkish Grand
National Assembly. The budget gives a breakdown of revenues
and expenditures for the "TRNC" as follows:
(Note: These figures are in Turkish Lira. The current
exchange rate is 1.5 Turkish Lira per $1. End Note)
Expenses: 2,645,273,043 (up 3 percent from 2009)
--------------
Personnel -- 999,810,806 (down 1.4 percent from 2009)
Social Security -- 45,361,506
Property and Services -- 171,678,012
Current Expenditures -- 1,152,842,719
Capital Expenditures -- 109,640,000
Capital Transfers -- 42,850,000
Loan Payments -- 5,540,000
Reserve Appropriations -- 117,550,000
Revenues: 2,504,144,000
--------------
Local Income -- 1,302,961,500 (down 9.6 percent from 2009)
Price Stability Fund -- 264,362,900
Other Funds -- 37,095,600
Return on Capital Expenditures -- 4,724,000
Assistance from the Turkish Republic -- 305,000,000 (up 4
percent from 2009)
Credits from the Turkish Republic -- 590,000,000 (up 532
percent from 2009
Internal Sources: 141,129,043
3. (C) Our colleagues at Embassy Nicosia are in a better
position to decipher these categories, but from Ankara the
key columns are the credits and the assistance from Turkey:
altogether 895 million Turkish Lira (roughly $600 million).
This is a whopping 535 percent increase in Turkish assitance
compared to 2009, at least as far as the official "TRNC"
budget is concerned. In fact, Turkey kept dribbling
additional budgetary support to north Cyprus throughout 2009.
Korhan told us earlier that in April 2009 the new National
Unity Party (UBP) had come into office only to discover that
the "TRNC" coffers had been depleted by the previous
Republican Turkish Party (CTP) government during its
pre-election spending spree. UBP had to appeal to Ankara for
an immediate 600 million TL transfer, which the Turkish
Government reluctantly agreed to provide. Korhan seemed
nonchalant that a full third of the "TRNC" budget now relies
directly on assistance from Turkey.
4. (C) The MFA is decidedly less nonchalant but still
relatively resigned to this significant transfer of funds
from Ankara to Lefkosa. MFA Deputy Director for Cyprus Kerim
Uras told us Ankara regularly scolds the Turkish Cypriots
about their prolific spending. He noted as an example that
salaries for professors and instructors in northern Cyprus
are well above the norms in Turkey. Uras said Deputy Prime
Minister Cicek (whose portfolio includes Cyprus) in
particular has lashed out at the "TRNC's" lavish tendencies
-- asking why "TRNC" officials all have Mercedes, for example
-- but to no avail. The Turkish Cypriots know full well that
Ankara will continue to subsidize them, Uras said. The north
Cyprus government has passed legislation that drastically
reduces the wages of newly hired civil servants. This was
ANKARA 00001781 002 OF 002
done as a sop to Turkish demands to show fiscal rectitude.
The actual effect on the budget, however, will be close to
zero, at least for several years.
5. (C) COMMENT: Ankara may complain about the financial costs
of propping up the "TRNC" but it would never consider turning
off the tap. Cyprus is viewed as a fundamental national
cause, and therefore untouchable -- something the Turkish
Cypriots seem quick to exploit. Reducing this financial
drain in the event of a solution would certainly be a
sweetener for Ankara, but by itself is not something that
could serve as motivating factor during the talks.
Silliman
"Visit Ankara's Classified Web Site at http://www.intelink.s
gov.gov/wiki/Portal:Turkey"
SIPDIS
DEPARTMENT FOR EUR/SE
E.O. 12958: DECL: 12/14/2019
TAGS: PREL PGOV TU
SUBJECT: TURKEY: SUPPORT FOR "TRNC" CARRIES HIGH PRICE TAG
REF: A. ANKARA 1718
B. NICOSIA 363
Classified By: POL Counselor Daniel O'Grady, for reasons 1.4(b,d)
1. (C) SUMMARY. Turkey's financial aid to the "TRNC" is
roughly $600 million annually -- one third of the "TRNC"
budget. Ankara routinely grouses about what it perceives as
the Turkish Cypriots' lack of fiscal responsibility, but
would never consider turning off this funding tap and does
not view the potential savings of a Cyprus solution as a
relevant factor in the current negotiations. END SUMMARY.
2. (C) "TRNC Ambassador" Namik Korhan recently passed us a
copy of the 2010 "TRNC" annual budget, contained in fiscal
legislation currently being reviewed by the Turkish Grand
National Assembly. The budget gives a breakdown of revenues
and expenditures for the "TRNC" as follows:
(Note: These figures are in Turkish Lira. The current
exchange rate is 1.5 Turkish Lira per $1. End Note)
Expenses: 2,645,273,043 (up 3 percent from 2009)
--------------
Personnel -- 999,810,806 (down 1.4 percent from 2009)
Social Security -- 45,361,506
Property and Services -- 171,678,012
Current Expenditures -- 1,152,842,719
Capital Expenditures -- 109,640,000
Capital Transfers -- 42,850,000
Loan Payments -- 5,540,000
Reserve Appropriations -- 117,550,000
Revenues: 2,504,144,000
--------------
Local Income -- 1,302,961,500 (down 9.6 percent from 2009)
Price Stability Fund -- 264,362,900
Other Funds -- 37,095,600
Return on Capital Expenditures -- 4,724,000
Assistance from the Turkish Republic -- 305,000,000 (up 4
percent from 2009)
Credits from the Turkish Republic -- 590,000,000 (up 532
percent from 2009
Internal Sources: 141,129,043
3. (C) Our colleagues at Embassy Nicosia are in a better
position to decipher these categories, but from Ankara the
key columns are the credits and the assistance from Turkey:
altogether 895 million Turkish Lira (roughly $600 million).
This is a whopping 535 percent increase in Turkish assitance
compared to 2009, at least as far as the official "TRNC"
budget is concerned. In fact, Turkey kept dribbling
additional budgetary support to north Cyprus throughout 2009.
Korhan told us earlier that in April 2009 the new National
Unity Party (UBP) had come into office only to discover that
the "TRNC" coffers had been depleted by the previous
Republican Turkish Party (CTP) government during its
pre-election spending spree. UBP had to appeal to Ankara for
an immediate 600 million TL transfer, which the Turkish
Government reluctantly agreed to provide. Korhan seemed
nonchalant that a full third of the "TRNC" budget now relies
directly on assistance from Turkey.
4. (C) The MFA is decidedly less nonchalant but still
relatively resigned to this significant transfer of funds
from Ankara to Lefkosa. MFA Deputy Director for Cyprus Kerim
Uras told us Ankara regularly scolds the Turkish Cypriots
about their prolific spending. He noted as an example that
salaries for professors and instructors in northern Cyprus
are well above the norms in Turkey. Uras said Deputy Prime
Minister Cicek (whose portfolio includes Cyprus) in
particular has lashed out at the "TRNC's" lavish tendencies
-- asking why "TRNC" officials all have Mercedes, for example
-- but to no avail. The Turkish Cypriots know full well that
Ankara will continue to subsidize them, Uras said. The north
Cyprus government has passed legislation that drastically
reduces the wages of newly hired civil servants. This was
ANKARA 00001781 002 OF 002
done as a sop to Turkish demands to show fiscal rectitude.
The actual effect on the budget, however, will be close to
zero, at least for several years.
5. (C) COMMENT: Ankara may complain about the financial costs
of propping up the "TRNC" but it would never consider turning
off the tap. Cyprus is viewed as a fundamental national
cause, and therefore untouchable -- something the Turkish
Cypriots seem quick to exploit. Reducing this financial
drain in the event of a solution would certainly be a
sweetener for Ankara, but by itself is not something that
could serve as motivating factor during the talks.
Silliman
"Visit Ankara's Classified Web Site at http://www.intelink.s
gov.gov/wiki/Portal:Turkey"