This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 ANKARA 003848 
 
SIPDIS 
 
 
SENSITIVE 
 
 
DEPT FOR NEA/NGA - NJENSEN AND EUR/SE 
DEPT PASS TO USAID FOR OFDA 
 
 
E.O. 12958: N/A 
TAGS: ETRD ENRG EAID EAIR PREL TU IZ
SUBJECT: TURKEY-IRAQ ECONOMIC RELATIONS; UPDATE ON BARTER 
DEAL AND PROPOSED AVIATION LINKS 
 
 
REF: A. ANKARA 3830 
     ¶B. ANKARA 3777 
 
 
¶1. (U) Baghdad minimize considered. 
 
 
Summary 
------- 
 
 
¶2. (SBU) Finance Minister Unakitan told the Ambassador that 
the Prime Minister had instructed an interagency group to 
resolve the problems holding up trade at the Habur Gate, 
including those involved in the Delta Petroleum products 
barter arrangement.  The Foreign Ministry had followed up 
with a letter instructing the Foreign Trade U/S to implement 
the Prime Minister,s instruction.  He also said the GOT was 
interested in establishing civair links with Iraq and asked 
for U.S. cooperation.  The Foreign Trade Undersecretariat 
insisted that there would be no special deal for Delta 
Petroleum.  MFA and Foreign Trade sources expect 
implementation of the opening to Iraqi imports to be effected 
sometime during the week of June 16.  End Summary. 
 
 
¶3. (SBU) On June 13, the Ambassador discussed Turkey,s 
planned opening to Iraqi imports, the Delta ) SOMO fuel 
barter arrangement, and resumption of air links with Iraq 
with Finance Minister Unakitan.  Econoff discussed Turkish 
lifting of Iraq sanctions with Kaya Turkmen, MFA Deputy 
Director General for Bilateral Economic Relations, and with 
Tevfik Mengu, the Foreign Trade Undersecretariat,s Director 
General for Agreements, the same day. 
 
 
Lifting Sanctions on Imports from Iraq 
-------------------------------------- 
 
 
¶4. (SBU) Unakitan told the Ambassador that he had met with 
the Minister of Foreign Affairs, the State Minister for 
Foreign Trade, and the Interior Minister on June 11 at the 
direction of the Prime Minister to resolve problems at the 
Habur Gate.  Unakitan stated that the barter of gasoline and 
liquid petroleum gas for Iraqi crude oil would go forward, 
and that MFA would send a letter to Foreign Trade to enable 
Delta Petroleum to begin implementing the barter arrangement. 
 Unakitan in fact invited the Delta Petroleum General 
Director to attend part of the meeting with the Ambassador, 
and suggested that Delta follow up with MFA and the Foreign 
Trade U/S.  Unakitan raised the issue of KDP levies on 
Turkish trucks entering Iraq.  The Ambassador responded that 
the KDP had recently cut its fees to USD 20 per truck, based 
on information we had received (but not confirmed). 
 
 
¶5. (SBU) Turkmen told Econoff that MFA had sent a letter to 
the Prime Ministry June 13 requesting issuance of 
instructions to all relevant GOT bodies to open the Habur 
border crossing to Iraqi imports.  Turkmen believes this will 
be implemented sometime during the week of June 16.  With 
regard to the Delta import/export arrangement, Turkmen 
confirmed that MFA sent a letter to U/S Foreign Trade 
requesting specific authorization for the fuel import/export 
with Iraq to begin immediately. 
 
 
¶6. (SBU) Mengu confirmed that Foreign Trade had received 
MFA,s letter on Delta, but insisted that there would be no 
special deal for Delta.  Mengu maintained that Delta would be 
able to implement its barter arrangement when Turkey lifted 
remaining sanctions on Iraqi imports.  He predicted that this 
would happen within several days.  Mengu also raised the 
issue of KDP taxation of Turkish trucks, but stated that 
Turkey,s opening to Iraqi imports was not linked to an end 
to KDP fee collection.  Econoff responded that coalition 
authorities were working toward elimination of customs fees 
at all of Iraq,s border crossings. 
 
 
Aviation 
-------- 
 
 
¶7. (SBU) Unakitan told the Ambassador that the GOT is 
interested in starting flights between Baghdad and Istanbul 
as soon as possible, and requested U.S. cooperation in this 
matter.  The Ambassador responded that the Embassy would 
follow up on this issue.  Note:  See ref B on establishing 
civilian air control between Iraq and Turkey.  End Note. 
Pearson 
PEARSON