MINISTERS WOO ISTANBUL BUSINESS COMMUNITY IN

UNCLAS ISTANBUL 000091 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: ECON ENRG PGOV PHUM TU SUBJECT: MINISTERS WOO ISTANBUL BUSINESS COMMUNITY IN ADVANCE OF MUNICIPAL ELECTIONS REF: ISTANBUL 86 ¶1. (SBU) Summary: In recent remarks to the Istanbul business community Foreign Minister Babacan, Energy Minster Guler and State Minister for EU Affairs Bagis underscored the government's adherence to Western political ideals including democracy, human rights and free market principles. The ministers' comments, which preceded the March 9 start of the official campaign period, appeared designed to reassure the Istanbul business community of the government's commitment to Western ideals and to outline accomplishments in the area of energy and EU policy in the run up to municipal elections on March 29. Given that a recent AmCham survey showed a significant drop in confidence in government economic policy making, these overtures may be an attempt to reassure an increasingly skeptical business community. End Summary. ¶2. (U) On February 25, Foreign Minister Ali Babacan in remarks to the Turkish American Business Council (TAIK) repeatedly stressed "shared political values" including human rights, the rule of law and free market economies. Babacan said the top policy issues of the U.S. and Turkey were "almost identical." He was optimistic with regard to the new administration's foreign policy goals and expressed a desire to work closely with the United States on regional issues. ¶3. (U) During a February 27 address to the annual meeting of the International Investors Association (YASED),recently appointed State Minster for EU Affairs Egemen Bagis painted an optimistic picture of government of Turkey (GOT) accomplishments in support of Turkey's bid for EU membership. He highlighted advances in the areas of human rights (TRT-6 Kurdish language programming, greater emphasis on gender equality and the Prime Minister's outreach to the Alevi community),cultural affairs (restoration of the Hagia Sofia and rehabilitation of dissident poet Nazim Hikmet),the environment (accession to the Kyoto Protocol) and southeastern Turkey (significant improvements in the areas of health care and basic services as well as an increased emphasis on local control of projects). Bagis encouraged YASED members to convey to their board members and CEOs the crucial need for Turkey to be admitted to the EU. ¶4. (U) Energy Minister Guler focused on Turkey's emerging role as an energy hub during his February 27 remarks at the American Business Forum Turkey (ABFT) gala dinner. He called on partners in the Nabucco pipeline to meet their obligations to convey gas from the Caspian basin to Europe. He described Nabucco as one of Europe's best hopes for limiting dependence on Russian gas. Guler noted that Turkey needs $125 billion dollars in energy investments, including $105 billion in electricity projects, by 2020. He urged American companies to invest in Turkey's energy sector, which he claimed "is not affected by the global financial crisis." ¶5. (SBU) Comment: Not surprisingly, the ministers' remarks advertised the success of the current government in dealing with the EU and the U.S. as well as in tackling difficult issues such as energy. Discussions of the effects of the ongoing economic crisis were kept to a minimum. A recent investment climate survey conducted by ABFT (reftel) demonstrates a significant loss in confidence in the ruling party following the 2007 general elections. These pre-election comments by ministers appear to have been at least in part designed to reassure an increasingly skeptical and demoralized business community that AKP is committed to Western ideals, can point to some concrete accomplishments on the road to EU accession and, at the end of the day, is better than any other alternative. End Comment. Wiener