ENERGY CHAPTER IS BOTTOM LINE FOR TURKEY

C O N F I D E N T I A L USEU BRUSSELS 001516 SIPDIS E.O. 12958: DECL: 11/08/2019 TAGS: EPET PREL TU EUN XS SUBJECT: ENERGY CHAPTER IS BOTTOM LINE FOR TURKEY Classified By: EEST Chief Louis L. Bono for reasons 1.4(b) and (d). ¶1. (C) Summary: Turkey's Deputy Permanent Representative to the EU stressed in a November 5 meeting that the opening of the Energy Chapter is a crucial step in Turkey-EU relations, and could pave the way for an agreement on the Southern Corridor. However, the inability of the EU to advance the accession process, due to unrelenting opposition by Cyprus, France and Germany, makes it difficult for the GoT to cooperate with the EU, even where Turkey has interests at stake. He also noted that Turkey is running out of patience on the ports issue. End summary. Turkey Signs IGA ) The Ball is in the EU's Court -------------- --- ¶2. (C) The Deputy Representative all but said the opening of the energy chapter is a quid pro quo for the Southern Corridor. He bemoaned the inertia of accession negotiations, noting 18 of the 33 chapters are blocked, as well as anti-Turkey rhetoric from France and Germany. He said public opinion of the EU is so low at this point, that government must avoid the perception of granting favors to the EU. He referred to the Nabucco Intergovernmental Agreement as a positive gesture by Turkey and said "the ball is now in the EU's court." He stressed that "the energy chapter is a priority and it would send a very positive political message that we are converging with the EU." "Little things can go a long way" he added noting how public opinion of the U.S. shifted dramatically after President Bush labeled the PKK a common enemy in January 2008. "When the time comes, we will make the deal, but the Europeans have to get their act together first." France and Germany Hiding Behind Cyprus -------------- ¶3. (C) He was particularly critical of Cyprus, but he also laid blame on France and Germany. He said that Cyprus has been a "nuisance" on recent attempts to open the Environment Chapter. Cyprus continues to use access to ports as a pretext to block accession. However, granting Cyprus access to Turkey's ports would provide an unfair trade advantage over Turkish Cypriots who do not have access to EU ports. He suggested that Turkey would be prepared to enter into a "temporary deal" to grant Cyprus access to Turkey's ports if the EU would reciprocate for Turkish Cypriots. He stressed that merely granting access to EU sea and airports would not constitute political recognition and pointed out that U.S. planes fly to Taiwan. He warned that if this issue is not resolved by December, there could be "consequences." He also criticized Cyprus for issuing offshore exploration permits when the borders are not clearly delineated. He said this has become a major political headache for the GoT. ¶4. (C) He said that France and Germany have the leverage to influence Cyprus, but use Cyprus as a front for their own agendas to impede accession. Negative comments by Sarkozy and Merkel about Turkey's membership have caused "incalculable damage" throughout Turkey, as they are perceived as EU policy rather than that of two member states. He said Turkey essentially vetoed Gaz de France,s (GDF) participation in the Nabucco consortium due to France's "hostile policy." At this point, the GoT would not consider engagement with GDF as a means to improving political/social relations with France: "this is an existential issue." Dealing With Difficult Neighbors -------------- ¶5. (C) He described relations with Azerbaijan as very complicated and said few, he included, really understand what is happening. He said that the Azeris are "very angry" about the normalization of relations between Turkey and Armenia and that the GoT must "cool them down." He speculated that the Azeris may be using Nabucco and ITGI for leverage, fully aware of the importance of the Energy Chapter to Turkey. Turkey cannot advance the process alone. He called on the U.S. and Russia to lean on Armenia and Azerbaijan to resolve the Nagorno-Karabakh dispute as a means towards advancing the Southern Corridor. (Comment: This could be considered antithetical to Russia's interests, given its opposition to the Southern Corridor. End comment.) He also called on the EU to mediate between Azerbaijan and Turkmenistan in order to open a Trans-Caspian route. ¶6. (C) The Deputy Representative, who studied at George Washington University, appreciates the strategic importance of the Southern Corridor, particularly for Turkey, but said Turkey must "look out for number one." He said Turkey resides in a rough neighborhood: "we have to deal with Russia and Iran everyday, and they are not easy to live with." He downplayed the recent agreement between Erdogan and Putin stating "we just gave them permission to build (Southstream)8 but added &there was no way for us to deny them these rights." Murray