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

UNCLAS SECTION 01 OF 05 ANKARA 007649 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR SENIOR ADVISOR TO THE PM A/S (PM/B) AND EUR/SE 
DOD FOR OSD/PA&E, OASD/ISA/EUR, OASD/ISA/NP, OASD/ISA/AP, 
OASD/ISA/NESA, OASD/ISA/BTF 
 
 
E.O. 12958: N/A 
TAGS: MCAP PREL TU
SUBJECT: 2004 REPORT TO CONGRESS ON TURKEY'S CONTRIBUTION 
TO THE COMMON DEFENSE 
 
 
REF: STATE 305999 
 
 
(U) This message is Sensitive But Unclassified. 
 
 
¶1. (U) This is Embassy Ankara's submission to the 2004 Report 
to Congress on Allied Contributions to the Common Defense. 
 
 
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General Assessment 
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¶2. (SBU) In aiming to accelerate democratization, pursue its 
EU candidacy, revive the economy and tackle chronic 
corruption, the GOT adopted wide-ranging legislative reform 
packages in January and July 2003.  The reforms were designed 
to:  crack down on torture; expand freedom of expression, 
association, and religion; and reduce the role of the 
military in government.  The July package included a number 
of changes to the NSC, including: allowing for a civilian to 
serve as NSC Secretary General; halving the number of regular 
NSC meetings, from one per month to one every two months; and 
limiting the NSC's authority to demand documents from other 
government agencies.  There was discussion in Parliament of 
establishing greater transparency in the military budget 
process, but no such legislation was adopted. 
 
 
¶3. (SBU) The Turkish military continues to support a military 
modernization program that should increase the capacity of 
Turkey to meet its NATO responsibilities. However, the GOT,s 
ability to finance its military modernization program remains 
seriously hampered by the government's difficult financial 
situation, particularly an enormous public debt load that 
siphons off most revenue.  Although the Turkish economy has 
been on an improving trend through most of 2003, even under 
the best of circumstances the government will have to live 
within a very tight budget for several years to maintain 
solvency.  This has limited, and will continue to limit, 
funds available for new military spending.  Since Turkey is 
poised to achieve real GNP growth of 5 percent in 2003, and 
is well positioned to maintain a strong growth rate in 2004, 
there may be room for some minor increases in force 
modernization spending, particularly if savings are realized 
from a shortened period of required military service. 
Embassy calculates 2003 defense spending -- including 
Gendarmerie and Coast Guard spending, which are not included 
in the Defense Ministry budget -- to be $8.1 billion, based 
on an exchange rate of $1=1.5 million Turkish Lira, 
representing 8.3 percent of the national budget and 3.4 
percent of GNP, approximately the same percentages as last 
year.  The $1.9 billion increase in defense spending over 
2002 is partly attributable to a stronger lira. 
Approximately 25 percent of the defense budget is allocated 
for personnel expenditures.  If the Defense Industry Support 
Fund -- an off-budget item that is not made public -- were 
included, total 2003 defense spending is reportedly on the 
order of 4.5 percent of GNP, or about $10.7 billion. 
 
 
¶4. (U) Turkey's eight-month leadership of ISAF ended in mid 
February 2003, although Turkey continues to contribute 139 
troops to ISAF, and in December offered three Blackhawk 
helicopters that help NATO fulfill its ISAF statement of 
requirements.  Turkey has offered 750 troops, six fighter 
aircraft and one frigate to the new NATO Response Force. 
 
 
¶5. (SBU) In this fiscal environment, the Turkish military has 
continued its indefinite postponement of a number of 
projects, including 20 utility/heavy-lift helicopters and the 
Turkish main battle tank program, which was planned to 
replace Turkey's legacy tank fleet.  TGS continues to focus 
on upgrading its M-60 fleet and has awarded the modernization 
contract to the Israeli IMI consortium.  The Turkish Attack 
and Reconnaissance Helicopter (ATAK) direct commercial sale 
(DCS) project is still in the contract negotiating phase. 
Although US Bell-Textron was selected as the primary 
candidate for the project, the negotiations continued at 
year's end.  The GOT continued to "negotiate" with the 
secondary contractor (the "Kamov" Israeli/Russian Defense 
Industry consortium) in 2003.  The Airborne Early Warning and 
Control (AEW&C) DCS project was finalized and became 
effective in June.  The GOT continues to evaluate contractor 
proposals to procure eight strategic unmanned aerial vehicles 
(UAV) but is expected to defer announcing down selection or 
awarding the UAV contract. 
¶6. (U) On July 11, 2002 Turkey and the US signed a $175 
million Memorandum of Understanding for Turkish partnership 
in the Joint Strike Fighter (JSF) Systems Development and 
Demonstration (SDD) Phase.  As the most highly invested Level 
III partner, Turkey will participate with the United Kingdom, 
Italy, Netherlands, Canada, Denmark, and Norway.  Over the 
next 10 years of the SDD phase, Turkey's investment will 
enable it to share in the technological exchange that marks 
this program as the largest investment in research and 
development that Turkey has made to date. 
 
 
¶7. (U) Throughout the reporting period, the GOT continued its 
support of UN and NATO humanitarian and peacekeeping efforts. 
 Turkey has been a strong supporter of NATO enlargement, PfP, 
the Mediterranean Dialogue and Berlin Plus. 
 
 
¶8. (SBU) Ankara continues to place emphasis on stability in 
the Caucasus and Central Asia.  At the November 17 US-Turkey 
Caucasus Working Group meeting the GOT and USG agreed to 
several concrete programs of cooperation in Georgia and 
Azerbaijan that should increase military capacity in those 
countries and encourage security independence and a western 
orientation. 
 
 
¶9. (SBU) Turkey's contributions to the war on terrorism have 
been substantial.  Its strategic location and distinction as 
the only Muslim NATO ally have further demonstrated Turkey's 
importance to the US and NATO.  Turkey has participated 
actively in GWOT.  In doing so, Muslim Turkey has supported 
our message that GWOT is not a war on Islam. 
 
 
¶10. (U) In Afghanistan, in addition to playing a lead role in 
ISAF, Turkey provided two aerial refueling tankers in support 
of Operation Enduring Freedom (OEF)-related missions in 2003, 
allowed coalition forces to use Turkish facilities to base US 
tankers and to transport humanitarian and other non-lethal 
support to Afghanistan.  Turkey continues to streamline 
customs procedures for equipment used for OEF, granted 
blanket permission for US OEF aircraft to operate in Turkish 
airspace and granted permission for USAF tankers to fly out 
of Incirlik to support regional air refueling operations. 
 
 
¶11. (U) Turkey continued to play a major role in Operation 
Northern Watch (ONW), which was mandated to enforce the 
no-fly zone over northern Iraq until the mission ended with 
the beginning of Operation Iraqi Freedom (OIF).  Despite 
repeated Iraqi threats of retaliation against Turkey and 
significant lost trade, the GOT supported ONW.  In the face 
of overwhelming public and parliamentary opposition to OIF, 
the GOT permitted overflight of combat aircraft for the 
operation.  Turkey has also facilitated the use of a resupply 
route through Turkey to supply coalition forces in Iraq with 
humanitarian, food and fuel products for Iraq.  In October 
2003, the Turkish Parliament voted to allow Turkish troops to 
be deployed to Iraq in support of the Iraq stabilization 
force.  In consultation with the US, Turkey decided to 
withdraw its offer of troops for the time being.  The GOT 
pledged $50 million for Iraqi reconstruction at the Madrid 
Donors conference and has offered to train Iraqi police using 
Turkish trainers. 
 
 
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Direct Cost-Sharing 
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¶12. (U) In accordance with current bilateral agreements, the 
USG has not sought a direct GOT contribution toward the costs 
associated with the stationing of US forces in Turkey. 
However, the US Office of Defense Cooperation in Ankara and 
its support facilities operate on Turkish military bases and 
enjoy Turkish military security.  In addition, Turkey 
increases its security presence at US facilities when the 
terrorist threat is perceived to be increased. 
 
 
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Indirect Cost-Sharing 
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¶13. (U) US military aircraft do not pay landing fees in 
Turkey to land at Turkish military airfields (estimated 
value: USD 2 million) but do pay to land at commercial 
airfields. 
¶14. (U) Indirect cost-sharing in the form of foregone rent of 
GOT-owned land and facilities used at no cost by the USG is 
calculated as follows: 
OFFICE OF DEFENSE COOPERATION, ANKARA 
 
 
-- Land (11,120 sq m of land valued at $14.90/sq m, based on 
prevailing fair market value of land in that district and 
adjusted for inflation of 14.88%) = $190,309; 
 
 
-- Prevailing fair market value of headquarters building 
(5,500 sq m), motor pool and shop (620 sq m), and parking lot 
(5,000 sq m) adjusted for inflation is $131,589/year. 
 
 
US-UTILIZED LAND AT INCIRLIK AIR BASE (all buildings and 
facilities are built and paid for by the USG): 
 
 
-- 13,477,700 sq m at the fair market value of $6.47/sq m = 
$87.201 million annually. 
 
 
Total Foregone Rent of GOT-owned land/facilities = $87.5 
million per year. 
 
 
 
 
¶15. (U) Forgone Tax/Customs revenue: 
 
 
American military activities and personnel assigned to Turkey 
are exempt from all income, corporate, stamp taxes and 
customs duties.  The estimated forgone revenue is calculated 
as follows: 
 
 
-- Turkey-wide PX/Commissary sales, valued at over $25.9 
million annually, at an average VAT rate of 22 percent is 
estimated to be $5.7 million annually; 
 
 
--Forgone customs duties on personal property, personal 
vehicles, supply equipment, weapons and munitions, military 
vehicles, and local purchases at an average rate of 18 
percent is estimated to be in excess of $6.1 million 
annually. 
 
 
Total Foregone Tax/Customs = $11.8 million per year 
 
 
¶16. (U) TOTAL INDIRECT COST SHARING = $101.32 million per year 
 
 
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Grant Aid, Peacekeeping, Humanitarian Assistance, Current 
Contingency Operations, Counterproliferation, and Nuclear 
Threat Reduction 
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¶17. (U) Because of its cultural, historic, and even familial 
ties to the Balkans, Turkey continues to be a supporter of a 
robust Western presence in the former Yugoslavia.  Turkey is 
an active participant in all NATO operations and supports 
KFOR with a mechanized infantry battalion task force of 
approximately 407 personnel.  It has supported SFOR since 
1996, currently with about 364 people in a mechanized 
battalion task force, with one company of the task force 
assigned to the security of SFOR headquarters.  Turkey has 
offered 750 troops, six fighter aircraft and one frigate to 
the new NATO Response Force.  Turkey has also assigned one 
frigate, three F-16 fighters, and one minesweeping vessel 
that can be provided upon request for support of SFOR and/or 
KFOR.  Turkey supports ISAF in Afghanistan with 139 troops. 
In addition to its NATO commitments, Turkey has committed up 
to five thousand troops to the EU's rapid reaction pool, 
including one mechanized brigade, one F-16 squadron, two 
C-130 or C-160 transport aircraft, two frigates, one 
submarine, one support vessel, and one amphibious ship. 
 
 
¶18. (U) Turkey's contributions to UN Peacekeeping Operations 
as of December 2003 are: 
 
 
MONUC (Congo)           11 civilian police officers 
UNAMSIL (Sierra Leone)  5 civilian police officers 
UNMIK (Kosovo)          119 civilian police officers 
UNMISET (East Timor)    2 military observers, 20 civ police 
officers 
UNOMIG (Georgia)        5 military observers 
UNAMA (Afghanistan)     1 civilian police officer 
UNMIL (Liberia)         3 civilian police officers 
 
 
¶19. (U) On the humanitarian front, Afghan reconstruction 
projects completed with Turkish assistance by the end of 2003 
total $5.4 million, fulfilling in two years, Turkey's 
five-year pledge.  Turkey hopes to commit an additional $5 
million over the next three years.  Turkey has focused its 
reconstruction efforts in four areas:  healthcare, training, 
agriculture and gender issues projects, such as those that 
address women's and children's issues. 
 
 
¶20. (U) To pursue its goals of stability and westernization 
in the region, Turkey provides military equipment, education 
and training to personnel from Central Asia and the Caucasus. 
 In Georgia, it has contributed $33 million in equipment and 
$14 million in training and training facilities in the past 
four years.  Some 30 Turkish military advisors in Georgia 
have trained more than 400 Georgian special forces and border 
guards.  In Azerbaijan, Turkey has provided some $131 million 
in equipment and $90.65 million in training and training 
facilities.  In Kazakhstan, Turkey has planned to provide 
some $4.8 between 1998-2003, but so far has spent $550k.  TGS 
coordinates with the US its assistance to the Caucasus and 
Kazakhstan through the OSD-led Caucasus working group.  In 
2003 Turkey provided training/education at various Turkish 
military institutions to 1200 guest military personnel from 
some 30 countries.  It has bilateral military training, 
technical and scientific cooperation agreements with almost 
60 countries. 
 
 
¶21. (U) Turkey has actively supported the US in pursuing the 
adaptation of NATO to a post-Cold War world.  Its commitment 
to the Partnership for Peace is evident in its Ankara PfP 
Training Center, which has trained more than 3600 students 
from 49 NATO, PfP and Mediterranean Dialogue countries in 
courses ranging from "Peacekeeping Operations Management" to 
"Refugee Relief."  The GOT budget to support participants in 
the PfP training center is approximately $150,000 per year. 
 
 
¶22. (U) Turkey has launched a number of groundbreaking 
regional cooperation mechanisms in southeastern Europe.  It 
continues to be an active participant in the South-East 
European Cooperation Process (SEECP) and the numerous 
initiatives that have emanated from it, including the South 
Eastern Europe Brigade (SEEBRIG), an integrated infantry 
brigade composed of units from Albania, Bulgaria, FYROM, 
Greece, Italy, Romania, and Turkey, with the US and Slovenia 
acting as observers.  Turkey contributes a mechanized 
infantry battalion, a reconnaissance company, an artillery 
battery and some supporting units to SEEBRIG.  In 1997-8, 
Turkey conceived and nurtured the Multinational Peacekeeping 
Force--Southeast Europe (MPFSEE), which operates the on-call 
SEEBRIG.  It was activated in 1999 under a Turkish commander. 
 In 2001, the GOT successfully brought together Russia, 
Ukraine, Romania, and Bulgaria to establish the BLACKSEAFOR, 
an on-call force comprising naval units of the Black Sea 
littoral states. 
 
 
¶23. (U) Turkey is a vigorous supporter of regional 
counterproliferation cooperation.  It is a member of every 
major arms control and counterproliferation regime, including 
NPT (1969), BWC, (1974), Wassenaar (1996), MTCR (1997), CWC 
(1997), CTBT (1999), NSG (2000), Australia Group (2000) and 
the Ottawa Convention (2003).  Since 1999, the GOT has 
undertaken the responsibility for the operation and 
maintenance of the Belbasi Seismic Monitoring Station, an 
important data source for the worldwide comprehensive test 
ban treaty (CTBT) nuclear test-monitoring network. 
 
 
¶24. (U) Since February 1999, TGS and the US Missile Defense 
Agency have been cooperating on a joint missile defense 
architectural study in anticipation of a developing tactical 
ballistic missile threat against Turkey and it NATO Allies. 
Turkey has consistently supported US objectives for pursuing 
missile defense for the Alliance. 
 
 
Point of Contact 
---------------- 
 
 
¶25. (U) Point-of-contact for this report is Pamela Tremont, 
Political-Military Affairs, PMA, tel: 90-312-455-5555 x 2525, 
tremontpm@state.gov. 
 
 
EDELMAN