VZCZCXRO0562
PP RUEHDA
DE RUEHAK #2422/01 2710815
ZNR UUUUU ZZH
P 280815Z SEP 07
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 3851
INFO RUEHIT/AMCONSUL ISTANBUL 3348
RUEHDA/AMCONSUL ADANA 2332
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 ANKARA 002422 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT PLEASE PASS USTR FOR MMOWREY 
DEPT PLEASE PASS USTR FOR DSTEIN 
DOC/MAC FOR CRUSNAK 
 
E.O. 12958: N/A 
TAGS: ETRD ECON ENRG TU
SUBJECT: A/S SULLIVAN WITH MFA U/S APAKAN ON TURKEY'S 
ECONOMIC SUCCESS, EPC FOLLOW-UP 
 
REF: ANKARA 555 
 
¶1. (SBU) Summary:  During a September 20 meeting with MFA 
Undersecretary Ertugrul Apakan, EEB A/S Sullivan raised the 
progress made on action items identified at the February 
U.S.-Turkey Economic Partnership Commission (EPC), an event 
showcasing Turkey that A/S Sullivan plans to host on the 
margins of the October World Bank/IMF meetings in Washington, 
DC, Reconstruction Opportunity Zones (ROZs) in Afghanistan 
and Pakistan, updating the U.S.-Turkey Bilateral Investment 
Treaty (BIT), and possible additional areas for U.S.-Turkish 
cooperation.  End summary. 
 
U.S.-Turkish Industrial Cooperation:  JPOs and ROZs 
--------------------------------------------- ------ 
 
¶2. (SBU) Both sides agreed that we have accomplished many of 
the items on the EPC Action Plan, but that work remains to be 
done before next year's meeting.  A/S Sullivan proposed early 
2008 in Washington, DC for the next EPC meeting.  A/S 
Sullivan outlined his recent meeting in Washington, DC with 
Turkish Union of Chambers and Commodities Exchanges (TOBB) 
President Rifat Hisarciklioglu.  During that meeting, they 
discussed the concept of Turkey-U.S. Joint Production 
Opportunities (JPOs), an idea that originated at the February 
EPC Meeting.  A/S Sullivan explained two possible places for 
cooperation, first in the existing West Bank Territory and 
potential established free trade zones there, and second in 
newly established Reconstruction Opportunity Zones in 
Pakistan and Afghanistan, on which A/S Sullivan is working on 
behalf of President Bush to gain approval by Congress.  Both 
areas would provide duty-free exports to the U.S. on a wide 
range of products, and A/S Sullivan welcomed Turkish 
participation in these areas. 
 
Science & Technology Agreement and Education Exchanges 
--------------------------------------------- --------- 
 
¶3. (SBU) U/S Apakan mentioned the latest draft of the 
U.S.-Turkey Science and Technology Agreement, which was 
presented to the MFA in March and from which we have not yet 
gotten a response.  U/S Apakan explained that the MFA is 
still working with the Scientific and Technological Research 
Council of Turkey (TUBITAK) to get their feedback and buy-in 
into the agreement, but that he thought such an agreement 
would be very important.  He asked about the two items on the 
EPC Action Plan related to university exchanges and U.S. 
professor visits.  The DCM updated them on the work PAO has 
done to identify and inventory existing exchange programs 
with Turkish universities.  In addition, A/S Sullivan 
mentioned U/S Hughes' bureau s interest in a potential visit 
of university professors to Turkey and promised to follow-up 
on this issue. 
 
Transportation and the "New Silk Road" 
-------------------------------------- 
 
¶4. (SBU) U/S Apakan mentioned Turkey's concentration on 
improving infrastructure in the region and creating a "new 
silk road" that would provide efficient land transportation 
from China to Brussels.  Apakan focused on transportation to, 
from and through the Central Asian (the "Turkic") Republics, 
Russia, and the Caucuses.  He also mentioned the need for 
greater maritime transportation cooperation between Black Sea 
and Mediterranean countries.  Turkey is currently discussing 
how to combine land, sea and aviation transportation, energy 
and water in the region and Apakan appealed for U.S. 
investment and cooperation in these areas.  A/S Sullivan 
spoke of Secretary Rice's interest in the region and 
developing land transportation not just east to west but also 
north to south from Central Asia to India.  He mentioned some 
of the infrastructure projects currently supported by the 
U.S., including bridges and road construction, a 
trans-Caspian pipeline feasibility study, and USTDA's Central 
Asian telecom conference, an action item on the EPC that 
Turkish representatives also attended. 
 
Turkey Event on the Margins of October Bank/Fund Meetings 
--------------------------------------------- ------------ 
 
¶5. (SBU) A/S Sullivan described his vision for the Turkey 
 
ANKARA 00002422  002 OF 002 
 
 
event he plans to host on the margins of the World Bank/IMF 
Meetings in October.  He wants to give senior Turkish 
officials the opportunity to tell their success story on 
battling inflation while achieving economic growth to senior 
U.S. officials and to U.S. businessmen.  A/S Sullivan 
mentioned a similar event sponsored in part by TOBB in New 
York prior to the meetings and hoped that his event in 
Washington, DC would expand on and complement this message. 
During a September 20 meeting with Turkish Treasury U/S 
Ibrahim Canakci, he invited new State Minister for the 
Treasury Mehmet Simsek to speak at the event.  A/S Sullivan 
also mentioned his interest in having Central Bank Governor 
Durmus Yilmaz and Investment Promotion Authority head 
Alpaslan Korkmaz speak if available.  Apakan expressed the 
MFA's support for this event and added that in addition to 
the Turkish officials A/S Sullivan had mentioned, Finance 
Minister Kemal Unakitan would also be in Washington, DC for 
the Bank/Fund meetings. 
 
Renegotiating the BIT 
--------------------- 
 
¶6. (SBU) A/S Sullivan raised the U.S.'s desire to upgrade the 
existing U.S.-Turkey Bilateral Investment Treaty (BIT).  He 
explained that upgrading the existing treaty in line with the 
U.S. model BIT would make Turkey more attractive to U.S. 
investors because of the protection it provides.  He agreed 
to share a model of the new BIT with the MFA. 
 
¶7. (U) This cable was cleared by A/S Sullivan. 
 
Visit Ankara's Classified Web Site at 
http://www.state.sgov.gov/p/eur/ankara/ 
 
WILSON