VZCZCXRO2719
PP RUEHIK RUEHYG
DE RUEHAK #1605/01 0860800
ZNR UUUUU ZZH
P 270800Z MAR 06 ZDK CTG NUM SVCS
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 4287
INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
RUEKJCS/DIA WASHDC PRIORITY
RHEHAAA/NSC WASHDC PRIORITY
RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY
RHMFISS/HQ USEUCOM VAIHINGEN GE PRIORITY
RUEUITH/ODC ANKARA TU PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J-3/J-5// PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC//USDP:PDUSDP/ISA:EUR/ISA:NESA// PRIORITY
RHMFIUU/425ABS IZMIR TU//CC// PRIORITY
RHMFIUU/39ABG INCIRLIK AB TU// PRIORITY

UNCLAS SECTION 01 OF 06 ANKARA 001605 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: MCAP PREL NATO US TU
SUBJECT: 2005/2006 REPORT TO CONGRESS ON TURKEY'S 
CONTRIBUTION TO THE COMMON DEFENSE 
 
REF: 05 STATE 223383 
 
ANKARA 00001605  001.3 OF 006 
 
 
Sensitive but unclassified -- please protect accordingly. 
 
¶1. (U) This is Mission Turkey's contribution to the 2005/2006 
Report to Congress on Allied Contributions to the Common 
Defense.  We follow reftel's format. 
 
General Assessment 
------------------- 
 
¶2. (U) A. Turkey has NATO's second-largest military after the 
United States.  It has taken on an impressive number of tasks 
within the Alliance, including NATO Rapid Deployable Corps 
(NRDC)-Turkey serving in the second deployment of NATO 
Response Force in 2003-2004; NRDC-Turkey will serve in this 
capacity again in 2007.  Turkey's Partnership for Peace 
Training Center opened in 1998; its Center for 
Excellence-Defense Against Terrorism opened in 2004.  Turkey 
has also offered its Air Force base in Konya as a NATO 
Tactical Air Training Center. 
 
¶3. (U) In Aug. 2005, Turkey completed its second 
International Security Assistance Force (ISAF) command (II 
and VII) in Afghanistan, which it held for six months and 
during which time it contributed over 1,500 troops.  Turkey, 
France, and Italy have agreed on a shared command of the ISAF 
Central Region Command in Kabul starting in the second half 
of 2006.  Turkey will lead a Provincial Reconstruction Team 
(PRT) in Wardak Province beginning in the second half of 
2006, and also currently contributes to SEEBRIG's deployment 
to the Kabul region.  Turkey also contributes to 
reconstruction and training efforts in Afghanistan.  It is 
involved in the reconstruction of schools and is exploring 
counter-narcotics training programs for Afghan police and 
alternative livelihood options for poppy farmers.  Following 
PM Erdogan's May 2005 visit to Afghanistan, the GOT increased 
its reconstruction budget for Afghanistan ten-fold, to $100 
million.  Turkey continues to provide significant personnel 
and assets for Operation Active Endeavor, KFOR, and Operation 
Althea.  Turkey also provided airlift as part of NATO's 
support for the African Union Mission in Sudan, and assisted 
NATO's relief efforts for the Pakistan earthquake. 
 
¶4. (U) B/C. Since 2003, Turkey has continued its reform 
efforts in order to meet EU candidacy criteria, and was 
rewarded with the official opening of membership negotiations 
on Oct. 3, 2005.  However, the GOT has also been preoccupied 
with events in Iraq, including concerns about perceived 
Kurdish expansionism and the significant increase in PKK 
violence in Turkey since the terrorist organization lifted 
its unilateral ceasefire in mid-2004.  Despite its concerns 
about Iraq, Turkey continues to be a strong partner in the 
Global War on Terrorism. 
 
¶5. (SBU) The Turkish military is undergoing a modernization 
program that should increase Turkey's capacity to meet its 
NATO responsibilities.  However, the GOT's ability to finance 
its military modernization program remains hampered by the 
government's limited financial flexibility as it gradually 
restores the health of public finances which were badly 
damaged by unsuccessful economic policies in the 1990,s and 
by the 2001 financial crisis.  Since the crisis, Turkey has 
experienced four straight years of strong economic growth 
during which Turkey's debt ratios have improved and public 
finances have been put on a more stable footing.  GDP grew 
8.9 percent in real terms in 2004 and preliminary estimates 
suggest it grew at least 5 percent in 2005.  Nevertheless, 
military spending competes not only with continuing large 
debt service payments but also with social and investment 
spending needs that were neglected during the immediate 
post-crisis austerity.  With 2006 growth likely to be strong 
as well, there may be room for minor increases in force 
modernization spending. 
 
¶6. (SBU) Embassy calculates 2005 defense spending at 13.5 
billion New Turkish Lira (YTL) or US$ 10.07 billion, based on 
an average exchange rate of 1.3408 lira per dollar. This 
calculation includes spending on Jandarma and Coast Guard 
which are not included in the Defense Ministry budget, but 
 
ANKARA 00001605  002.2 OF 006 
 
 
does not include Defense Industry Support Fund spending which 
is off-budget.  By this calculation, 2004 defense spending 
totaled 12.2 billion YTL, or US$ 8.6 billion using an average 
exchange rate of 1.421.  This represented 8.1% of the budget 
and 2.9% of GDP.  2005 defense spending represented 9.3% of 
the budget and 2.8% of GDP.  In the 2006 budget, Turkey is 
projected to spend US$ 10.01 billion, equivalent to 9.0% of 
the budget and 2.6% of projected GDP.  The reduction in the 
dollar figure is due to the forecast exchange rate used in 
Turkey's economic program:  1.4184 lira per dollar.  In lira 
terms, defense spending in 2006 will increase 5.2% from 2005. 
 The decline in defense spending in relation to GDP can be 
attributed to strong GDP growth coupled with continued fiscal 
austerity, rather than to a shift of spending away from the 
defense sector. 
 
¶7. (SBU) Historically the strongest area of our bilateral 
relationship, bilateral security cooperation is significantly 
declining.  Under Turkey's current policy,  the emphasis is 
on Direct Commercial Sales at the expense of Foreign Military 
Sales and American companies are having difficulty competing. 
 For years, the GOT has had the goal to develop an indigenous 
defense industry that can supply a significant portion of 
Turkey's military requirements.  To meet this goal and to 
simplify the bid evaluation process, the Undersecretariat for 
Defense Industries (SSM), Turkey's major systems procurement 
authority, recently began requiring companies to accept 
unconditionally all terms and conditions and to confirm at 
the time of bid submission the contractor government's 
willingness to allow transfer of the required technology. 
Although SSM understands the USG will not guarantee approval 
of technology transfer before a contract is signed, SSM has 
not revised the tender to remove that requirement.  We 
believe this issue could adversely affect Turkey's 
interoperability within the Alliance and diminish 
opportunities for Turkish and U.S. service personnel to work 
together. 
 
¶8. (SBU) D/E. Despite the unpopularity of the Iraq war, 
Turkey has provided significant logistical suppor to both 
Operation Iraqi Freedom and to OEF inAfghanistan.  Turkey 
has approved multiple requests for the use of Incirlik Air 
Base, including: a tanker refueling operation which has 
delivered over 28 million gallons since operations began in 
2003 and flown over 2,800 sorties; the transit of 8,500 U.S. 
troops on rotation from Iraq from January through April 2004; 
and the establishment in May 2005 of a logistics hub which 
allows six U.S. military C-17 aircraft to move the amount of 
cargo it took 9-10 military aircraft to move from Germany. 
This hub has facilitated the movement of 129 million pounds 
of supplies since its inception; flown 1280 C-17 sorties; 
received 577 wide-bodies cargo aircraft; and houses 150 TDY 
support personnel.  Turkey also approved the use of hub 
flights for the emergency evacuation of U.S. soldiers from 
Iraq.  In addition, Turkey has approved the use of Incirlik 
and other airfields for other CF members' use. 
 
¶9. (SBU) The Habur Gate, the only border crossing from Turkey 
into Iraq, provides 25% of fuel shipments to Coalition forces 
in Iraq and two-thirds of gasoline and diesel fuel shipments 
for the Iraqi people.  Significant shipments of food and 
water for coalition forces also pass over the border. 
 
¶10. (SBU) The Turkish government has also demonstrated its 
support through its public announcements of support for the 
recent Iraqi elections; the re-opening its consulate in Mosul 
in 2006; provision of training in Turkey for Iraqi diplomats, 
political parties, and (as part of the NATO training mission) 
Iraqi Security Forces; hosting a conference for Iraqi 
constitution drafters in July, and a meeting of Iraqi Sunni 
leaders with Amb. Khalilzad in Istanbul in December. 
 
¶11. (U) In 2004, Turkey launched its maritime interdiction 
operation in the Black Sea, Operation BLACK SEA HARMONY.  The 
GOT reported that in 2004 and 2005 it devoted approximately 
325 personnel, 50 vessels, and 220 aircraft to this 
operation.  In 2005, Turkey opened BLACK SEA HARMONY to the 
other Black Sea littoral states.  Turkey provides data 
obtained from this operation to NATO. 
 
 
ANKARA 00001605  003 OF 006 
 
 
Direct Cost-Sharing 
------------------- 
 
¶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 U.S. forces in Turkey. 
However, the U.S. Office of Defense Cooperation in Ankara and 
its support facilities operate rent-free on Turkish military 
bases and enjoy Turkish military security.  In addition, 
Turkey increases its security presence at U.S. facilities 
when the terrorist threat is perceived to be higher. 
 
 
Indirect Cost-Sharing 
--------------------- 
 
¶13. (U) Cost estimate if US Office of Defense Cooperation had 
to hire contract guards is US$ 321,000 for 2004 and US$ 
328,400 for 2005. Cost estimate to hire contract guards at 
Incirlik Air Base is US$ 642,000 for 2004 and US$ 656,000 for 
¶2005.  U.S. military aircraft do not pay landing fees to land 
at Turkish military airfields (estimated value: US$ 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 (2004) 
 
-- Land (11,120 sq m of land valued at US$ 14.90/sq m, based 
on prevailing fair market value of land in that district and 
adjusted for inflation of 14.86%) = US$ 190,342; 
 
-- 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 of 14.86% is US$ 
151,143/year. 
 
Total foregone rent of GOT-owned land and facilities is US$ 
341,485 for 2004. 
 
U.S.-UTILIZED LAND AT INCIRLIK AIR BASE (2004) (all buildings 
and facilities are built and paid for by the USG): 
 
--  Land (1 Acre = 4,047 Square meter) -- 4,047 x US$ 6.11 
(prevailing FMV land) = US$ 24,727 
 
-- 3,323 (total acres) x US$ 24,727.17 = $82,168,385 
 
-- Buildings - Total square footage of buildings (4,169,795) 
multiplied by average cost per square foot (US$ 43.86) 
equates to US$ 182,866,799 estimated value of buildings. 
 
Total cost of land and buildings for Incirlik is US$ 
265,035,184 for 2004. 
 
Total indirect cost for 2004 is US$ 3,304,485 -- includes 
landing fees, guards and foregone rent of GOT-owned land and 
facilities. 
 
OFFICE OF DEFENSE COOPERATION, ANKARA (2005) 
 
-- Land (11,120 sq m of land valued at US$ 14.90/sq m, based 
on prevailing fair market value of land in that district and 
adjusted for inflation of 14.86%) = US$ 218,628; 
 
-- 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 of 14.86% is US$ 
173,603/year. 
 
U.S.-UTILIZED LAND AT INCIRLIK AIR BASE (2005) (all buildings 
and facilities are built and paid for by the USG): 
 
-- Land (82,168,385.91 X 12% (inflation rate) = US$ 
92,028,592. 
 
-- Buildings - Total square footage of buildings (4,256,447) 
multiplied by average cost per square foot (US$ 43.86) 
 
ANKARA 00001605  004.2 OF 006 
 
 
equates to US$ 186,666,932 estimated value of buildings. 
 
Total cost of land and buildings for Incirlik is US$ 
278,695,524 for 2005. 
 
Total indirect cost for 2005 is US$ 3,376,631 -- includes 
landing fees, guards and foregone rent of GOT-owned land and 
facilities. 
 
¶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: 
 
-- For 2004, Turkey-wide PX/Commissary annual sales were over 
US$ 21,297,434.  Using the average VAT rate of 22 percent, 
foregone tax revenue was US$ 4.6 million. 
 
-- For 2005, Turkey-wide PX/Commissary annual sales were over 
US$ 23,067,026.  Using the average VAT rate of 22 percent, 
foregone tax revenue was US$ 5.1 million. 
 
--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 US$ 6.1 million 
annually for 2004 and 2005. 
 
Total Foregone Tax/Customs 2004 = US$ 10.7 million 
 
Total Foregone Tax/Customs 2005 = US$ 11.2 million 
 
Contingency Operations, etc. 
---------------------------- 
 
¶A. Recent Contingency Operations: 
 
¶16. (U) Turkey contributes to the following key contingency 
operations: 
 
Afghanistan: Commanded ISAF VII February-August 2005, 
contributing approximately 1500 troops.  For other periods in 
both 2004 and 2005, Turkey contributed approximately 230 to 
300 personnel to ISAF.  Turkey also maintains a small number 
of personnel at CFC-A Headquarters in Kabul. 
 
Kosovo: For both 2004 and 2005, Turkey maintained a battalion 
in KFOR plus some additional headquarters personnel, totaling 
from 375 to 400 troops. 
 
Bosnia: Turkey smoothly transitioned its SFOR presence into 
the EU-led Operation ALTHEA.  For both 2004 and 2005, its 
presence remained at about 350-370 personnel (one battalion 
plus others). 
 
Operation Active Endeavor: For 2004 and 2005, Turkey 
contributed four vessels and about 573 personnel to Operation 
ACTIVE ENDEAVOR. 
 
Operation Black Sea Harmony: For 2004 and 2005, Turkey used 
56 vessels and 220 aircraft to conduct Operation BLACK SEA 
HARMONY, Turkey's MIO in the Black Sea. 
 
¶17. (SBU) Iraq: Though the Turkish parliament decided on 
March 1, 2003 not to allow coalition forces to transit Turkey 
for OIF, since then Turkey has provided considerable support 
for OIF.  Despite the unpopularity of the Iraq war, Turkey 
has provided significant logistical support to both Operation 
Iraqi Freedom and to OEF in Afghanistan.  Turkey has approved 
multiple requests for the use of Incirlik Air Base, 
including: a tanker refueling operation which has delivered 
over 28 million gallons since operations began in 2003 and 
flown over 2,600 sorties; the transit of 8,500 US troops on 
rotation from Iraq from January through April 2004; and the 
establishment in May 2005 of a logistics hub which allows 6 
US military C-17 aircraft to move the amount of cargo it took 
9-10 military aircraft to move from Germany.  This hub has 
facilitated the movement of 41,339 tons of supplies since its 
inception; flown 1280 C-17 sorties; received 577 wide-bodies 
cargo aircraft; and houses 150 TDY support personnel.  Turkey 
 
ANKARA 00001605  005.2 OF 006 
 
 
also approved the use of hub flights for the emergency 
evacuation of US soldiers from Iraq. 
 
¶18. (SBU) The Habur Gate, the only border crossing from 
Turkey into Iraq, provides 25% of fuel shipments to Coalition 
forces in Iraq and two-thirds of gasoline and diesel fuel 
shipments for the Iraqi people.  Significant shipments of 
food and water for coalition forces also pass over the border. 
 
¶1. (U) UN Peace Support Operations: In 2004, Turkey 
contributed 265 personnel to other UN peacekeeping 
operations, and 269 in 2005. 
 
¶B. Military Assistance: 
 
¶20. (U) Afghanistan: All in 2005: Turkey donated US$ 3.5 
million in used military equipment, and donated US$ 850,000 
to the GOA for procurement of equipment.  12 Turkish 
instructors teach at Afghanistan's Military Academy in Kabul. 
 Turkish mobile teams trained 1452 members of the Afghan 
National Army, and trained 124 Afghan soldiers in Turkey. 
 
¶21. (U) Caucasus and Central Asia: 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.  It has contributed $41 
million in equipment in the past six years.  Turkey has 
trained some 1400 Georgian personnel.  In Azerbaijan, Turkey 
has provided some US$ 150 million in equipment and over US$ 
100 million in training and training facilities over the past 
six years.  In Kazakhstan, Turkey has provided $6.8 from 1998 
to 2005.  TGS coordinates with the US its assistance to the 
Caucasus and Kazakhstan through the OSD-led Caucasus Working 
Group.  Turkey provides somewhat less assistance to the other 
Central Asian states.  It provides no assistance to Armenia. 
 
¶22. (U) 2004 figures: 
 
Georgia: US$ 1.7 million 
Azerbaijan: US$ 1.8 million 
Kazakhstan: US$ 577,000 
 
(U) 2005 figures: 
 
Georgia: US$ 1.3 million 
Azerbaijan: US$ 1.6 million 
Kazakhstan: US$ 692,000 
 
¶23. (U) NTM-I: 2005: Turkey has five personnel assigned to 
NTM-I (four in Iraq).  Under NTM-I, 56 Iraqi officers trained 
in Turkey in 2005. 
 
¶C. Humanitarian Relief Operations: 
 
¶24. (U) Afghanistan: In 2005, the GOT announced it was 
increasing its reconstruction assistance ten-fold, to $100 
million. 
 
¶25. (U) Pakistan: Following the 2005 earthquake, Turkey sent 
24 planes and search and rescue and medical teams.  Turkey 
also facilitated the use of Incirlik Air Base for transport 
to Pakistan of 1.16 tons of humanitarian goods from the UNHCR 
warehouse in Iskenderun.  GOT and private donations from 
Turkish citizens totaled US$ 225 million. 
 
¶26. (U) Iraq: Over 2004 and 2005, the GOT provided US$ 2.9 
million in food, medicine, and other aid to residents in 
Talafar, Fallujah, Kirkuk, and Mosul.  Turkey has pledged US$ 
50 million is reconstruction aid for Iraq, but has disbursed 
relatively little of this sum. 
 
¶27. (U) Katrina: Turkey donated US$ 1.6 million in 2005. 
 
¶28. (U) Tsunami: In 2005, Turkey donated US$ 7.6 million for 
tsunami relief. 
 
SIPDIS 
 
¶29. (U) Georgia: Turkey provided US$ 1.0 million in food 
relief in 2004. 
 
¶D. Capacity Building: 
 
ANKARA 00001605  006.2 OF 006 
 
 
 
¶30. (U) As of January 2006, Turkey provides 236 civilian 
police officers to UN missions in DROC, Sierra Leone, Kosovo, 
East Timor, Liberia, Ivory Coast, Haiti, and Sudan, as well 
as five military observers in Georgia. 
 
¶31. (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, Macedonia, 
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 BLACKSEAFOR, an 
on-call force comprising naval units of the Black Sea 
littoral states.  In 2004, Turkey launched its maritime 
interdiction operation in the Black Sea, Operation BLACK SEA 
HARMONY.  The GOT reported that in 2004 and 2005 it devoted 
approximately 325 personnel, 50 vessels, and 220 aircraft to 
this operation.  In 2005, Turkey opened BLACK SEA HARMONY to 
the other Black Sea littoral states.  Turkey provides data 
obtained from this operation to NATO. 
 
¶32. (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 since its opening in 1998 has trained 
almost 6000 students from 58 countries in courses ranging 
from "Peacekeeping Operations Management" to "Refugee 
Relief." 
 
¶33. (U) Turkey opened its Center of Excellence-Defense 
Against Terrorism (COE-DAT) in 2005.  Since its inception, it 
has provided courses to 260 students from at least 27 
countries.  The U.S. provides two officers and one NCO to the 
Center. 
 
¶E. Counterproliferation: 
 
¶34. (U) Turkey commenced participation in the Proliferation 
Security Initiative in 2003.  The GOT participated in three 
PSI Experts Group meetings in 2005, and participated in two 
PSI exercises.  Turkey plans to host the first PSI combined 
land, air, and sea exercise in May 2006. 
 
¶35. (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. 
 
¶36. (U) Since February 1999, TGS and the U.S. 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 its NATO allies. 
Turkey has consistently supported Alliance missile defense 
activities. 
 
Visit Ankara's Classified Web Site at 
http://www.state.sgov.gov/p/eur/ankara/ 
 
MCELDOWNEY