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

UNCLAS ANKARA 004034 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: OTRA AMGT ASEC TU
SUBJECT: AMB. WILSON'S VISIT TO IZMIR FOR FOURTH OF JULY 
 
¶1.  Summary:  Ambassador's first official visit to Izmir on June 
26-27, 2006 was characterized by a warm welcome from a cross-section 
of political and business leaders as well as positive press coverage 
that was picked up at the national level.  The reopening of an 
American Consulate was raised at almost every venue.  The highlight 
of the visit was an Independence Day reception, the first in five 
years, at Izmir's Aegean Free Trade Zone that featured entertainment 
by the HaviKoro break dance group visiting Turkey under the auspices 
of American Voices.  End Summary. 
 
¶2.  Izmir Governor Oguz Kaan Koksal welcomed Ambassador and provided 
a broad overview of Izmir.  He commented on economic trends and 
local issues, including the migration of people from the East in 
search of manufacturing jobs.  The biggest problem was housing, 
which local authorities were working together to address.  He said 
the city is pleased to have a major NATO headquarters located in 
Izmir. 
 
¶3.  Izmir Mayor Aziz Kocaoglu provided an overview of Izmir, 
infrastructure projects and long-term development objectives.  He 
highlighted efforts to develop Izmir as a tourist center on its own, 
rather than as a stopover on the way to Cesme and other popular 
Aegean locales.  To that end, the city is upgrading its 
infrastructure to support cultural venues, fairs, and major 
conferences.  Another key priority has been cleaning Izmir bay 
through dredging, improved waste management, and other activities. 
 
¶4.  Ambassador asked Kocaoglu about the challenges in managing the 
Izmir municipality.  The mayor noted that in recent years, new 
national legislation has resulted in tremendous changes at the local 
level by greatly expanding the size of local municipalities.  This 
legislation gave municipalities more authority, as well the 
responsibility to plan and provide basic services.  Ambassador 
commented that laws that strengthen municipalities help to reinforce 
democratic institutions.  We see this as a good development in the 
long run despite the short-term strains for new services.  He also 
noted that the Embassy has arranged international visitor programs 
in the U.S. for municipal officials as a way to facilitate further 
municipal reforms.  The mayor expressed interest in having city 
officials participate. 
 
¶5.  Ekrem Demirtas, Chairman of the Izmir Chamber of Commerce and 
leading local business figure, also reviewed economic, trade, and 
investment projects.  Ambassador thanked Demirtas for the Chamber's 
support of Commercial Service Izmir operations.  Demirtas noted that 
CS Izmir's Berrin Erturk was recognized by the local business 
community as the "go to" person for assistance in doing business 
with the U.S. 
 
¶6.  Demirtas asked the Ambassador's advice on how Izmir can succeed 
in attracting more trade and investment.  Ambassador outlined 
several suggestions:  1) Reputation is everything.  For American 
companies to look to Izmir, they need to see that existing American 
trade and investment activities in the region are succeeding and 
believe they are being treated fairly.  2) Investment is 
infrastructure and direct links/access to Izmir is critical.  3) 
Trade follows investment, and connecting with the U.S. financial 
sector present in Turkey (e.g., GE/Garanti Bank), which has a vested 
interest in promoting U.S. trade and investment, is important.  4) 
Linking with the Turkish government's "Year of the Americas" focus 
on specific U.S. markets could be helpful.  5) Inclusion of Izmir in 
an upcoming Scientific America supplement on Turkey.  6) Reaching 
out to Fortune 1000 companies not in Turkey. 
 
¶7.  Demirtas highlighted some of Izmir's major initiatives.  1) 
Izmir is bidding to host the 2015 World Expo.  The selection of 
Izmir would establish the city as a world-class destination and 
serve as a catalyst for economic development.  The Ambassador 
commended the effort but noted that the U.S. does not participate in 
the BIE organization that selects the World Expo winner.  2) Izmir 
has begun the process of applying to UNESCO to be designated a world 
heritage site.  3) Recognizing the need for more direct flights to 
Izmir, 111 local businessmen have partnered (with $20 million 
capital) to create Izmir Air.  It is starting with three aircraft 
but plans to increase its fleet to 15 soon.  It will also begin a 
partnership with Pegasus Airlines.  4) Focusing on retail banking. 
With an initial capital investment of approximately 60 million 
Euros, the Aegean Business Bank opened in June 2006 with branches in 
Athens and Izmir.  The five-year plan is to open 26 branches 
(including Istanbul, Ankara, Thessaloniki, and Piraeus) and to 
increase capitalization to 100 million Euros. 
 
¶8.  Ambassador spoke at an Aegean Industrialists and Businessmen's 
Association luncheon that included a lively question and answer 
session.  He also met with the Aegean Chamber of Industry and 
visited Konak Pier, the site of a major U.S.-led real estate 
property investment that continues to face obstacles from local 
authorities who are seeking to force the group out.  Ambassador 
pledged continued advocacy support on their behalf.  He also met 
with students and faculty at Izmir Economic University. 
 
WILSON