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PP RUEHWEB

DE RUEHIT #0183/01 0661048
ZNR UUUUU ZZH
P 071048Z MAR 07
FM AMCONSUL ISTANBUL
TO RUEHC/SECSTATE WASHDC PRIORITY 6708
INFO RUEHAK/AMEMBASSY ANKARA PRIORITY 6227
RUEHTH/AMEMBASSY ATHENS PRIORITY 0777
RUEHKB/AMEMBASSY BAKU PRIORITY 0012
RUEHBM/AMEMBASSY BUCHAREST PRIORITY 0144
RUEHUP/AMEMBASSY BUDAPEST PRIORITY 0061
RUEHCH/AMEMBASSY CHISINAU PRIORITY 0051
RUEHKV/AMEMBASSY KYIV PRIORITY 0008
RUEHMO/AMEMBASSY MOSCOW PRIORITY 0349
RUEHNC/AMEMBASSY NICOSIA PRIORITY 0733
RUEHFR/AMEMBASSY PARIS PRIORITY 0214
RUEHVJ/AMEMBASSY SARAJEVO PRIORITY 0010
RUEHSF/AMEMBASSY SOFIA PRIORITY 0252
RUEHSI/AMEMBASSY TBILISI PRIORITY 0135
RUEHTI/AMEMBASSY TIRANA PRIORITY 0074
RUEHYE/AMEMBASSY YEREVAN PRIORITY 0082
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS ISTANBUL 000183 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
BUDAPEST FOR ENVIRONMENTAL HUB, PARIS FOR OECD 
 
E.O. 12958: N/A 
TAGS: PREL SENV EU
SUBJECT: BSEC SENIOR OFFICIALS DISCUSS RELATIONS WITH EU, 
UPCOMING GALA 
 
REF: A. ATHENS 342 
 
     ¶B. ANKARA 367 
     ¶C. 2006 ISTANBUL 2061 
 
¶1. (SBU) Summary:  BSEC Senior Officials met February 26-27 
in Istanbul to discuss establishing an 
institution-to-institution relationship with the European 
Union, review the status of ongoing projects including a 
labor/employment study to be performed the OECD, and discuss 
preparations for the 15th Anniversary of BSEC.  Procedural 
problems no longer bog the committee down in hours of 
discussion before an agenda can be adopted, but a bitter 
division between Greece and Turkey over Cyprus' application 
for observer status kept the committee in closed session for 
hours longer than expected.  End Summary. 
 
¶2. (SBU) The BSEC Senior Officials Committee met February 
26-27 in Istanbul.  Representatives from all 12 BSEC member 
states as well as several observers (Italy, Poland, and 
Belarus as well as the United States) attended the meeting. 
Secretary General Chrysanthopoulos appears to have dealt with 
 
SIPDIS 
a penchant by some delegations to debate the substance of 
issues during the discussion of the agenda that had resulted 
in the adoption of the agenda taking several hours at past 
meetings.  The discussion of Project Development Fund 
applications was also dealt with efficiently, with 
Chrysanthopoulos and the Serbian Chairman in Office working 
together to keep the discussion focused. 
 
The Observer Impasse 
--------------------- 
 
¶3. (SBU) The bulk of the discussions were held in camera 
(observers, including the United States and the BSEC 
associated bodies, did not participate) and covered the 
budget and financial issues, staffing and personnel, and 
several applications for observer status.  The primary point 
of contention during the in camera discussions was Cyprus' 
application for observer status, which the Turkish delegation 
blocked.   In response the Greek delegation reportedly 
refused to agree to applications for observer status from all 
other applicants including Kazakhstan, the United Kingdom, 
Hungary and several other countries.  This impasse is 
long-standing, and does not seem to affect requests for 
renewal of existing observer status.  However, 
representatives from several delegations expressed concern to 
us that the struggle over Cyprus might impede BSEC's efforts 
to forge a closer relationship with the EU, a process that 
should result in the EU applying for observer status. 
 
¶4. (SBU) All discussions related to observers were held in 
camera.  The possibility of a USG-sponsored environmental 
seminar (ref C) had clearly been reviewed by the member 
states as representatives from the Ukrainian and Russian 
delegations sought us out to express support for the concept 
following the closed session.  The head of the Greek 
delegation expressed support for the idea at the very 
beginning of the conference, noting that he had raised the 
issue with Embassy Athens (ref A) not long ago.  The Turkish 
delegation head asked for more detail as soon as possible and 
stressed the need to have the proposal formally announced at 
the upcoming Working Group on Environmental Protection. 
 
Relations with the EU and with the OECD 
---------------------------------------- 
 
¶5. (SBU) BSEC-EU interaction was a primary focus of the open 
sessions.  The Committee of Senior Officials intends to meet 
with EU Troika representatives on March 23 in Istanbul.  BSEC 
hopes to convince the EU to work with BSEC on an 
institution-to-institution basis, thus creating a mechanism 
that would enable the EU to work directly with the BSEC 
states as a group as well as bilaterally.   The European 
Commission is currently updating a 1997 paper on Black Sea 
policy, and BSEC would like to take this opportunity to 
define itself as "the main partner of the EU in the wider 
Black Sea area." 
 
¶6. (SBU) The OECD Development Center has agreed to prepare a 
report on macroeconomic trends with a focus on labor and 
employment creation policies in the BSEC member states. 
Greece, Turkey and Romania have contributed financially to 
this project.  The OECD project leader is actively seeking 
additional financing from institutional sponsors as well as 
core financing from OECD member states.  The project leader 
hopes to publish the outlook in December 2007 or January 2008. 
 
Preparations for BSEC's 15th Anniversary 
----------------------------------------- 
 
¶7. (SBU) Turkey will take over the BSEC Chairmanship from 
Serbia in May and is already deep in preparations for the 
15th anniversary of BSEC, to be celebrated in Istanbul on 
June 24.   Asim Arar, MFA Deputy Director General for 
Multilateral Economic Affairs, noted that a major celebration 
was being arranged by the Government of Turkey (GOT) to 
coincide with the Istanbul Summit (ref B).  BSEC member 
states have been invited to attend at the head of state/head 
of government level.  The 13 BSEC observers will be invited 
at the foreign minister level.  Certain international 
organizations, such as the OSCE, the OECD, the EU, UNDP and 
the World Bank will also be invited.  Arar explained that 
invitations to the summit would be delivered in capitals 
soon, most likely during the first week of March. 
 
¶8. (SBU) Comment:  Chrysanthopoulos efforts to make BSEC more 
internally efficient as well as project-oriented appear to be 
bearing fruit as his first year in office draws to a close. 
Although the modalities of the BSEC-EU interaction still 
remain to be worked out, at least the two groups have agreed 
to meet and for its part BSEC seems to be eager to develop 
this relationship.  The GOT also appears committed to 
revitalizing BSEC during its term in office.  The BSEC 
secretariat as well as a number of key member states (Turkey, 
 
SIPDIS 
Greece, Russia, Ukraine) have encouraged the United States to 
cooperate with BSEC on an environmental conference (see 
proposal ref C.)   End Comment. 
JONES