R 231301Z JUL 86
FM AMEMBASSY ANKARA
TO SECSTATE WASHDC 3112
INFO AMCONSUL ADANA
AMCONSUL ISTANBUL
AMCONSUL IZMIR
AMEMBASSY BAGHDAD

C O N F I D E N T I A L ANKARA 07641 
 
E.O. 12356: DECL:OADR 
TAGS: PREL ETRD TU IR IZ
SUBJECT:  IRAN-IRAQ:  IRAQI DEBT REPAYMENT AND 
       KHOMEINI'S AIMS IN THE REGION 
 
¶1. CONFIDENTIAL - ENTIRE TEXT. 
 
¶2. SUMMARY:  TURKEY IS CONSIDERING THE TERMS OF 
REPAYMENT OF IRAQI DEBTS, THE MFA OFFICIAL 
RESPONSIBLE FOR IRAN AND IRAQ , ONDER OZAR, SAID 
RECENTLY.  ACCORDING TO THE MFA ASSISTANT DIRECTOR 
GENERAL FOR THE MIDDLE EAST AND AFRICA, KHOMEINI NOT 
ONLY WANTS TO OUST SADDAM HUSSEIN, HE IS DETERMINED 
TO ESTABLISH ISLAMIC REGIMES THROUGHOUT THE REGION, 
INCLUDING TURKEY.  PM OZAL APPARENTLY IS LESS 
CONCERNED.  END SUMMARY. 
 
¶3.  DURING A RECENT CALL ON THE MFA OFFICIAL 
RESPONSIBLE FOR IRAN AND IRAQ, ONDER OZAR, ON ANOTHER 
SUBJECT, POLCOUNS ASKED WHETHER TURKEY HAD DECIDED TO 
EXTEND TERMS FOR REPAYMENT OF THE CURRENT IRAQI DEBT 
AND THE ADDITIONAL CREDITS BAGHDAD IS SEEKING.  OZAR 
SAID THAT PRIME MINISTER OZAL'S TOP STAFF HAD MET TO 
CONSIDER THE CREDIT ISSUE ON SUNDAY, JULY 13, BUT 
THAT HE HAD NOT YET LEARNED THE OUTCOME OF THEIR 
DISCUSSIONS.  HE SAID THAT A TURKISH DELEGATION WOULD 
SOON BE DISCUSSING THE QUESTION IN BAGHDAD. 
 
¶4.  ACCORDING TO UNCONFIRMED PRESS REPORTS OF JULY 
18, THE TWO COUNTRIES REACHED AGREEMENT ON REPAYMENT 
TERMS ON JULY 17.  IRAQ IS TO PAY 700 MILLION DOLLARS 
OF THE OUTSTANDING 1.5 BILLION DOLLARS IN CASH AND 
THE BALANCE, DEFERRED FOR ONE YEAR, WILL BE PAID IN 
THE FORM OF OIL IMPORTS TO TURKEY.  FYI:  A HIGH 
LEVEL TEAM LED BY UNDER SECRETARY PAKDEMIRLI SPENT 
JULY 16-20 IN BAGHDAD.  EMBASSY IS SEEKING AN 
APPOINTMENT WITH AN APPROPRIATE MFA OFFICIAL FOR A 
READOUT.  END FYI. 
 
¶5. OZAR WAS SURPRISINGLY SANGUINE OVER SADDAM 
HUSSEIN'S PROSPECTS FOR STAYING IN POWER FOR THE 
FORESEEABLE FUTURE.  HE NOTED THAT THE KEY ISSUE FOR 
BOTH WARRING STATES, BUT ESPECIALLY FOR IRAQI MORALE, 
WAS NOT WHAT HE CALLED THE INDECISIVE MILITARY 
SITUATION, BUT DOMESTIC CONDITIONS AND THE STATE OF 
THE ECONOMY. 
 
¶6. OZAR'S BOSS, MFA ASSISTANT DIRECTOR GENERAL FOR 
THE MIDDLE EAST AND AFRICA, TEOMAN SURENKOK (PLEASE 
PROTECT), SOUNDED LESS CONFIDENT WHEN HE TOLD 
POLCOUNS HIS JUDGMENT THAT KHOMEINI WOULD NOT BE 
CONTENT MERELY TO OUST SADDAM HUSSEIN, BUT WAS 
DETERMINED TO ESTABLISH A REGIME LIKE HIS OWN IN 
IRAQ, AND THROUGHOUT THE REGION, "INCLUDING TURKEY." 
SURENKOK WENT ON TO SAY, "WE HAVE TOLD THE PRIME 
MINISTER THAT THIS IS A DANGER FOR TURKEY, BUT HE 
DISAGREES." 
 
¶7. COMMENT:  THE TURKS HAVE AN INTEREST IN AVOIDING 
AN ALARMING VIEW OF RECENT DEVELOPMENTS IN THE WAR 
WHICH MIGHT PREJUDICE THEIR CURRENT NEGOTIATIONS WITH 
IRAQ OVER CREDIT TERMS.  AT THE SAME TIME THE GOT 
WANTS TO AVOID INDICATIONS THAT THEIR SUBSTANTIAL 
STAKES IN IRAQ--INCLUDING THE PIPELINE AND OVER A 
BILLION DOLLARS IN OUTSTANDING DEBT--MIGHT BE IN 
JEOPARDY. 
 
STRAUSZ-HUPE