TURKISH CONSULATE TO OPEN IN BASRA

C O N F I D E N T I A L BASRAH 000024 SIPDIS E.O. 12958: DECL: 5/1/2019 TAGS: PGOV PREL IZ SUBJECT: TURKISH CONSULATE TO OPEN IN BASRA CLASSIFIED BY: Mark W. Bocchetti, PRT Team Leader, PRT Basrah, Department of State. REASON: 1.4 (b),(d) ¶1. (C) Summary: Over a REO-hosted lunch on April 19th, Turkish Consul General Ahmet Yazal announced his government's plan to open a consulate in Basra next month. The proposed consulate will be located in a temporary office until a suitable building can be constructed. The Turkish government's intent, according to Yazal, is to establishing strong economic and political ties with southern Iraq. He blamed Basra's former provincial government for blocking economic opportunity in past years and spoke optimistically, albeit cautiously, about the province's future. He also suggested that Iranian economic dominance in the region will be short-lived. End summary. ¶2. (C) Yazal explained that he plans to use his temporary office, where he has been working since his arrival in Basra two months ago, as the new consulate until a proper building can be constructed. He said his government was in the process of acquiring a suitable piece of land and negotiating with construction contractors. Construction of the new building, he added, will necessarily begin by March 2010, when the lease on his temporary office expires. He projected that construction of the building would take one year. ¶3. (C) Yazal described his government's search for a suitable location for the new consulate. He said Ankara had explored relocating to the Basra Air Station, but ultimately deemed it too expensive. He also said his government had considered taking up residence near the Iranian Consulate, but decided against it after learning that violence against that particular mission was not uncommon. ¶4. (C) Yazal explained that by launching a consulate in Basra, the Turkish government hopes to facilitate economic links between Turkey and southern Iraq. He described Basra's economic potential as "enormous" and believes both countries would benefit from a close economic relationship. He expressed interest in meeting with members of the Basra Investment Council and Basra Chamber of Commerce, and hopes to organize trips to Ankara and Istanbul for its members in the near future. Yazal added that over the last several years, Basra's corrupt and ineffective government had made trade and investment very difficult. "Local government," he said, "was usually the largest obstacle to conducting business in Iraq. He was cautiously optimistic regarding the province's newly-elected government, suggesting that its chances for success depended largely on the new governor's relationship with Prime Minister Maliki. ¶5. (C) Yazal added that the new consulate would also serve to increase Turkey's political contact with Iraq. Acknowledging the importance of Iran in the area, he clarified that Ankara's outreach was not meant to be a balance against Iranian influence, contrary to the opinions of many Basrawis. He discounted any desire to compete with Iran, adding that he was not particularly concerned with its dominance of the local market, as it would be "short lived." He explained that as Basrawis prosper, locally produced goods will multiply and more expensive imports will be accessible, creating many options to Iranian goods. BOCCHETTI