VZCZCXYZ0037
PP RUEHWEB

DE RUEHIT #1575/01 2431454
ZNR UUUUU ZZH
P 311454Z AUG 06
FM AMCONSUL ISTANBUL
TO RUEHC/SECSTATE WASHDC PRIORITY 5786
INFO RUEHNC/AMEMBASSY NICOSIA PRIORITY 0702

UNCLAS ISTANBUL 001575 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL TU
SUBJECT: FORMULA ONE: CYPRUS INGREDIENT INVITES CONTROVERSY 
IN ISTANBUL 
 
 
¶1.  (U) Summary: For the second year in a row, Istanbul 
played host to Formula One Grand Prix, the world's biggest 
motorsports organization with a reported fan base of 
approximately two billion people.  Brazil's Felipe Massa 
edged out Spain's Fernando Alonso and race favorite Michael 
Schumacher to take home the victory cup in a controversial 
ceremony that included the "President" of the "Turkish 
Republic of Northern Cyprus" ("TRNC"), recognized only by 
the Government of Turkey (GOT) and Azerbaijan.  The three-day 
event drew a total of 135,000 spectators, including 80,000 on 
the final race day -- disappointing figures compared to last 
year's draw (182,000 and 110,000, respectively) and pre-race 
expectations for 235,000 plus spectators.  End Summary. 
 
----------------------------------- 
POST RACE FUMES VISIBLE FROM CYPRUS 
----------------------------------- 
 
¶2.  (U) After weeks of anticipation, amplified by a barrage 
of advertising, including ubiquitous posters and television 
commercials, Formula One Grand Prix came to Istanbul 25-27 
August for the 14th leg of an 18-event 2006 season.  While 
the event was organized by Turkey's leading business 
federation, the Turkish Union of Chambers and Commodity 
Exchanges (TOBB), the Greater Istanbul Municipality, Turkey's 
General Directorate of Highways and the Akfirat local 
municipality contributed heavily to bring Formula One to 
Turkey by building approximately 15 miles of four to six-lane 
divided highway feeder roads connecting the track venue to 
The European Highway (TEM).  Mostly new, air-conditioned city 
buses brought the curious from central Istanbul gathering 
points to the track.  Glitzy kiosks at the Grandstand 
featured lavish new car BMW displays, Intel chips that control 
split-second timing in many of the race cars and, of course, 
a wide array of Formula One clothing and memorabilia for eager 
consumers.  Meanwhile, on the closed loop tracks below, cars 
reached speeds of 226 mph as engines punched doppler effect 
decibels to ear-piercing levels. 
 
¶3.  (U) While competitors faced risks on the track, a game 
of political risk played itself out off-track as Rifat 
Hisarciklioglu, head of TOBB -- and frequently referred to 
as a possible political hopeful -- asked "TRNC" "President," 
Mehmet Ali Talat, if he would be willing to present the 
victor's cup.  "Shortly before the race was over, I asked 
Mr. Talat to do it.  We told the F1 administration as well, 
and they had to agree as we are the hosting country," said 
Hisarciklioglu according to Turkish press reports.  The Greek 
Cypriot government immediately stated it would bring a 
complaint against Turkey to Formula One's oversight agency, 
the FIA, which announced today that it would investigate the 
matter.  The Chairman of the Istanbul Chamber of Commerce 
(a subsidiary of TOBB) Murat Yalcintas, claimed that the 
decision was worth the risk.  According to press, GOT 
Justice Minister and government spokesman Cemil Cicek stated 
that Mr. Talat was recognized by Turkey as the "President" of 
the "TRNC".  "That's how we see it, and as of now, it's not 
that important how others see it." 
 
--------------------------------------------- ----- 
SHORT TERM COSTS JUSTIFY POTENTIAL LONG TERM GAINS 
--------------------------------------------- ----- 
 
¶4.  (SBU) Though the economic impact of this year's Formula 
One event in Turkey has yet to be calculated, a recent 
Deloitte & Touche report expected spectators to spend 
around 43.5 million euro (USD 55.6 million), including 27 
million euro (USD 34.5 million) in spending by foreign 
tourists.  The report also argues that Formula One should 
be profitable for Turkey in the long term despite its 
initial investment of 220 million euro (USD 281 million) 
for construction of Istanbul Park and an annual fee of 13.5 
million euro (USD 17.3 million) payable to Formula One 
Administration.  It is unclear whether lower than expected 
attendance also reflects a smaller than expected foreign 
spectator presence at the event.  (Note: Turkish tourism as 
a whole decreased this summer relative to 2005 amidst an 
increase in PKK activity.  End note.) 
 
¶5.  (SBU) Comment: Felipe Massa and his Team Ferrari may 
have won the race but the "TRNC" stands to be the big 
political victor coming out of this weekend's events.  The 
Formula One Grand Prix series commands a television 
audience third only to the Football World Cup and the 
Olympics.  And while appearing on such a large global stage 
may not bring the "TRNC" immediate political recognition, it 
is sure to increase its name recognition.  Turkey, for its 
part, by hosting Formula One, a principal object of passion 
 
among European sports enthusiasts, demonstrated that more 
than the TEM connects it to the rest of Europe.  However, 
the last-minute decision by Hisarciklioglu -- who does not 
represent the GOT -- to put the "TRNC" in the limelight 
also fanned the flames of antipathy with the Greek 
Cypriots at a delicate time for Turkey,s EU accession 
negotiations.  End Comment. 
JONES