VZCZCXRO3725
PP RUEHAG RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ
RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHAK #2047/01 1041223
ZNR UUUUU ZZH
P 141223Z APR 06
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 4822
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/DIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J-3/J-5// PRIORITY
RHEHAAA/NSC WASHDC PRIORITY
RUEUITH/ODC ANKARA TU//TCH// PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEUITH/TLO ANKARA TU PRIORITY
RUEHAK/TSR ANKARA TU PRIORITY
RUEHAK/USDAO ANKARA TU PRIORITY
RHMFISS/CDR USEUCOM VAIHINGEN GE PRIORITY

UNCLAS SECTION 01 OF 04 ANKARA 002047 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PTER ECON TU IZ
SUBJECT: CONGRESSMAN WEXLER'S APRIL 10 VISIT TO ANKARA 
 
 
¶1.  (SBU) Summary:  Representative Robert Wexler met April 10 
with PM Erdogan, FM Gul, Economy Minister and lead EU 
negotiator Babacan, D/CHOD Kosaner, PM foreign policy advisor 
Davutoglu, and Turkish Union of Chambers President 
Hisarciklioglu.  Wexler's message was that although the HAMAS 
visit had hurt Turkey in Washington, we need to focus on 
areas of mutual interest and cooperation, which far outweigh 
our differences.  Minister Babacan laid out Turkey's recent 
economic achievements and EU progress, but warned that 
political factors, particularly Cyprus, could prove 
difficult.  FM Gul stressed the commonality of U.S. and 
Turkish interests; both he and Babacan hinted that reaction 
to the HAMAS visit had made them re-think its wisdom.  PM 
Erdogan characterized bilateral ties as strong but defended 
the HAMAS visit.  End Summary. 
 
Economy Minister and EU Negotiator Babacan 
----------------------------------------- 
 
¶2.  (SBU) Economy Minister Babacan, also the chief negotiator 
for Turkey's EU accession, reviewed the positive economic 
developments in 2005, including 7.4% GDP growth a reduction 
in the inflation rate to 7.7%, a lower ratio of government 
debt to GDP, and strong foreign direct investment inflow of 
$9.8 billion, of which a considerable share had come from GE 
Capital's investment in a Turkish bank.  He acknowledged that 
the current account deficit was high at more than 6% of GDP, 
but claimed that at least two points of this came from higher 
energy prices.  Noting that other EU accession countries, 
such as Poland, had large current account deficits in the 
run-up to their membership, Babacan thought it was "normal" 
for Turkey to have a similar experience.  Furthermore, the 
new floating exchange rate system was a shock absorber. 
 
¶3.  (SBU) On the EU accession process, Babacan said the 
process was proceeding smoothly at a technical level. 
Screening was complete for nearly half of the 35 chapters and 
the first chapter negotiations should begin in May. 
Political issues had proven more difficult than economic 
ones.  More work needed to be done to meet the Copenhagen 
criteria in full, especially in the area of implementation. 
The Cyprus issue was "a very important case" that could also 
slow down or block progress.  He thought that setting 
political benchmarks for the opening of technical chapters 
was unfair, but that Cyprus remained the greatest risk. 
 
¶4.  (SBU) Asked by Wexler what could be done to boost 
bilateral trade with the United States, Babacan noted the 
efforts that had been made to resolve commercial disputes, 
mentioning the Motorola and Cargill cases (he did not mention 
the new problems that recently cropped up for Cargill.)  He 
noted that there were some other commercial issues, but said 
they were being addressed.  Babacan also said that extending 
the Qualifying Industrial Zone (QIZ) initiative to Turkey had 
been on the agenda, but that Turkey had had concerns with the 
involvement of a third country (i.e. Israel) in the 
initiative.  While Turkey was happy with the U.S. positions 
on Cyprus and EU membership, Babacan thought that a 
resolution of the Cyprus issue would also pay political 
dividends to the extent that it reduced risk perceptions. 
 
¶5.  (SBU) As in his other meetings throughout the day, Wexler 
raised his concern over the visit of HAMAS officials to 
Turkey and the impact this would have on relations with the 
United States.  Wexler said that the most unhelpful aspect of 
the visit was that it had emboldened critics of Turkey in the 
United States and deflated those who were working for a 
better relationship.  Babacan explained that the decision to 
receive Mishal had been made with the best of intentions, 
with the thought that Turkey could pass a strong message to 
reject violence and accept Israel.  However, in retrospect it 
was clear that Turkey's good intentions had been 
misunderstood.  Wexler said Turkish officials should have 
realized the impact the visit would have on relations with 
the U.S. and the lack of impact it would have on HAMAS and 
said he had hoped for better analysis from Turkish leaders. 
Babacan said Turkey believed that its political and economic 
success could help inspire a positive image, but now realized 
the consequences of the HAMAS visit and how it was perceived. 
 
Turkish Union of Chambers President Hisarciklioglu 
 
ANKARA 00002047  002 OF 004 
 
 
--------------------------------------------- ----- 
 
¶6.  (SBU) Wexler also met the head of the Turkish Union of 
Chambers (TOBB), the leading Turkish business federation, 
Rifat Hisarciklioglu, who expressed his hope for expanded 
economic relations between the United States and Turkey as a 
stronger "third leg" (along with political and security ties) 
for the overall relationship.  Hisarciklioglu noted that TOBB 
was working with the U.S. Chamber of Commerce on a USG-funded 
project to enhance contacts between U.S. and Turkish SMEs  He 
said that Turkish business was contributing to Iraq's return 
to a normal life and that Turkish business circles shared 
U.S. views about on Iran's nuclear program.  He also said 
that TOBB cooperation with the Israeli Manufacturers 
Association and the Palestinian Chamber of Commerce to 
develop the Erez Industrial Zone was continuing at a 
technical level with the support of Prime Minister Olmert, 
former PM Peres, and President Abbas.  Hisarciklioglu added 
that he found the work of the Congressional Study Group to be 
valuable and that TOBB would continue to support it. 
 
PM's Foreign Policy Advisor Davutoglu 
------------------------------------------- 
 
¶7.  (SBU) The Prime Minister's senior foreign policy advisor 
Ahmet Davutoglu emphasized that the U.S. and Turkey share a 
strategic vision on the EU, Balkans, Caucasus, Middle East, 
and Asia.  However, this common strategic vision has been 
threatened by a series of downturns caused by external 
factors like the book "Metal Storm" in 2005 and the movie 
"Valley of the Wolves" in 2006. 
 
¶8.  (SBU) Davutoglu repeatedly emphasized the importance of 
political stability and managing public opinion.  He noted 
that Turkey has passed through a decade of political and 
economic instability and Ankara wants domestic, regional, and 
international stability to prevail.  He said that U.S. 
foreign policy in the region is correct and Ankara has been 
supporting Washington, but U.S. policies are very ambitious 
and the USG must do more to feel the pulse of the people in 
the region.  Turkey supports the U.S. goal of regional 
democratization, but democratization can only succeed if 
there is stability.  The U.S. and Turkey, moreover, must 
demonstrate to the people that the two countries are on the 
same side.  The PKK issue is causing problems with Turkish 
public opinion and the U.S. and Turkey must discuss the 
future of the Iraqi city of Kirkuk now, before it becomes a 
major problem in bilateral relations or fuels Turkish-Kurdish 
tensions within Turkey. 
 
¶9. (SBU) Congressman Wexler praised PM Erdogan's 
"progressive" decision to advocate greater democratization as 
the solution to the ongoing Kurdish problem.  He also 
reiterated the initiatives the USG has undertaken to help 
Turkey against the PKK, but acknowledged that U.S. action has 
not lived up to Turkey,s expectations. 
 
Foreign Minister Gul 
-------------------- 
 
¶10.  (SBU) FM Gul emphasized the commonality of U.S. and 
Turkish interests and values.  He stressed the importance of 
maintaining positive relations, but added that Turkey has 
become more democratic and Turks have become more independent 
and outspoken in their views.  In Gul,s view, one should not 
fear the diversity of voices within Turkey, but appreciate 
that the GOT needs time to educate the Turkish public on 
certain issues. 
 
¶11. (SBU) Gul noted U.S.-Turkish cooperation on Iraq and Iran 
and defended his decision to meet with HAMAS.  Turkey is 
opening a new consulate in Mosul and had encouraged the Sunni 
Arabs to participate in the last Iraqi election.  On Iran, 
Turkey does not want any WMDs in its neighborhood and is 
aligning itself with the international community.  The world 
must show a united front to Iran and encourage Tehran to 
uphold its international obligations.  Gul, however, also 
emphasized that no one wants to see another war in the 
region.  On HAMAS, Gul said he believed it was important for 
HAMAS,s first post-election visit to be to Turkey, rather 
than Iran.  However, he expressed reluctance to take what he 
 
ANKARA 00002047  003 OF 004 
 
 
termed another risk on HAMAS since, is his view, Turkey's 
efforts were not understood. 
 
D/CHOD Kosaner 
-------------- 
 
¶12. (SBU) TGS Deputy Chief General Isik Kosaner extolled the 
strength of the U.S.-Turkey military-to-military 
relationship.  Despite some ups and downs since WWII, the 
mil-mil relationship had "no problems" and, quoting CJCS Gen 
Pace's remarks in Ankara a few weeks earlier, the 
relationship is "crucial" for both countries.  He emphasized 
how Turkey has stood shoulder to shoulder with the U.S. in 
the global war on terrorism, underscoring the Turkish 
military's contributions to Afghanistan, including its plan 
to take over command together with France and Italy of the 
Cenral Region and to open a PRT in Wardak.   Representative 
Wexler responded that he was heartened to hear such a warm 
evaluation of the relationship, because he recalled other 
times when it was not that way.  He said Washington 
appreciated the role Turkey was playing in Afghanistan, and 
noted that appreciation was growing for Turkey's 
contributions in Iraq. 
 
¶13. (SBU) The Congressman asked what Kosaner would advise 
militarily regarding northern Iraq and Kirkuk.  Kosaner, 
noting that it was more a political than a military issue, 
underscored the importance of Kirkuk.   Its resources should 
be used to the benefit of all Iraqis.  He warned that 
attempts to change the province's status through demographic 
shifts or to devote Kirkuk's natural resources to one group 
would damage the "internal balance" within Iraq.  Kirkuk 
should either have a special status or its future should be 
decided by a nation-wide referendum, he advised. 
 
¶14. (SBU) The other issue in northern Iraq of concern for 
Kosaner was the PKK.  The group uses its bases in northern 
Iraq to equip, man and train cadres sent to Turkey to commit 
terrorism.  Journalists easily visit them in their camps. 
But as Turkey is standing with the U.S. in the global war on 
terrorism, a terrorist group targeting Turkey exists in a 
country under the USG's control.  This is hard for the 
Turkish public to understand.  Having just come from a 
funeral for an officer killed by the PKK, it was easy to 
understand why the people demand action.  We know where they 
are, but we cannot do anything because of the U.S., he said. 
 
PM Erdogan 
---------- 
 
¶15.  (SBU) Erdogan said Turkey is affected by the &turmoil8 
in Iraq, Afghanistan and across the Middle East.  He noted 
Turkey is cooperating with the U.S. in the region.  The 
political, economic, and military ties between the U.S. and 
Turkey are strong and will continue to be so.  While the 
media and &other circles8 often speculate about ruptures in 
the relationship, GOT leaders know that what counts is their 
direct contact with high-level USG officials. 
 
¶16.  (SBU) Wexler noted that a Turkish journalist had asked 
him earlier if the USG had determined that its relationship 
with the AKP government was no longer important.  He was 
troubled by the question.  There are disagreements, but no 
one in Washington has written off the bilateral relationship. 
 The AKP government has made extraordinary progress since 
coming to power in 2002, implementing many economic and 
political reforms.  Moreover, the AKP enjoys more popular 
support than previous Turkish governments.  He said Turkey,s 
critics in Washington fail to recognize these realities. 
 
¶17. (SBU) Wexler said many in Washington are grateful to 
Turkey for the role it is playing in Afghanistan, though 
Turkey is not getting as much credit as it should.  There is 
also a growing appreciation for Turkish cooperation in Iraq. 
He said he would ask only one &favor8 of the PM ) that 
when he makes foreign policy decisions, he consider as one 
factor the impact those decisions will have in Washington. 
Turkey should be careful to avoid moves that weaken its 
allies in Washington and strengthen its enemies.  This is 
particularly relevant in light of the decision to invite 
HAMAS leaders to Ankara. 
 
ANKARA 00002047  004 OF 004 
 
 
 
¶18.  (SBU) Regarding HAMAS, Erdogan said all parties must 
show faith in democracy and accept those for whom the 
Palestinian people voted.  Hamas will have to give up 
violence.  It will not be able to renounce its previous 
positions overnight, but its rhetoric is starting to soften. 
Turkey is telling them that they have to become democratic 
now that they have been elected.  No other Muslim country 
could deliver that message. 
 
¶19.  (U) Congressman Wexler did not clear this message. 
 
Visit Ankara's Classified Web Site at 
http://www.state.sgov.gov/p/eur/ankara/ 
 
WILSON