VZCZCXRO5524
PP RUEHDA
DE RUEHAK #3014/01 3531043
ZNR UUUUU ZZH
P 191043Z DEC 07
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 4737
INFO RUEHGB/AMEMBASSY BAGHDAD 1097
RUEHTV/AMEMBASSY TEL AVIV 0166
RUEHBUL/AMEMBASSY KABUL 0090
RUEHIL/AMEMBASSY ISLAMABAD 1006
RUEHJM/AMCONSUL JERUSALEM 0304
RUEHIT/AMCONSUL ISTANBUL 3664
RUEHDA/AMCONSUL ADANA 2545
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 ANKARA 003014 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EAID ETRD PREL TU IZ AF PA IS
SUBJECT: TURKEY'S TOP BUSINESS GROUP TAKES LEAD IN 
RECONSTRUCTION 
 
REF: A. ANKARA 2781 
 
     ¶B. ANKARA 2779 
     ¶C. TEL AVIV 2730 
     ¶D. STATE 132207 
     ¶E. ANKARA 2422 
     ¶F. ANKARA 2928 
     ¶G. ANKARA 2820 
 
¶1. (SBU) Summary:  The Turkish Union of Chambers and 
Commodities Exchanges (TOBB) is a leader in the Ankara Forum 
for Economic Cooperation between Turkey, Palestine, and 
Israel (refs A-C).  They are developing free trade zones in 
Gaza and the West Bank, although they are frustrated by lack 
of progress in Gaza.  TOBB also is interested in the proposed 
Reconstruction Opportunity Zones (ROZs) (refs D-E) in the 
FATA region along the Pakistani-Afghan border.  TOBB leaders 
met with Pakistani government and business leaders in 
Islamabad in November, and plan to visit Afghanistan in 
January.  TOBB has also been approached by the UK to 
participate in reconstruction in Basra, Iraq.  They have the 
institutional capability to mobilize significant Turkish 
investment money to make these sorts of projects successful. 
End summary. 
 
West Bank & Gaza 
---------------- 
 
¶2. (SBU) As part of its goal of restoring peace to Turkey's 
troubled neighborhood (refs A-C), the Turkish Union of 
Chambers and Commodities Exchanges (TOBB) has become a leader 
in the Ankara Forum for Economic Cooperation between Turkey, 
Palestine and Israel.  Its main focus has been to establish 
free trade zones in Gaza and the West Bank, although they are 
frustrated by the lack of progress in Gaza.  Mustafa 
Bayburtlu, TOBB Director for EU & International Affairs, told 
us that negotiations continue with the Israeli Army for a 
Security and Trade agreement in Gaza.  During the September 
Ankara Forum meeting in Jerusalem, they were asked to shift 
their focus to creating a similar project in the West Bank 
instead of Gaza.  While they begin work on the West Bank 
project, TOBB will continue to try to bring the Gaza project 
to fruition. 
 
¶3. (SBU) In cooperation with Israeli and Palestinian 
officials, TOBB chose the West Bank region of Tarkumia for 
the industrial zone.  Bayburtlu estimated it will cost $25 - 
30 million just to get the West Bank project started.  Unlike 
in Gaza, the land in Tarkumia is privately-owned.  To avoid 
separate negotiations with each landowner, TOBB will sign a 
concession agreement with the Palestinian Authority and then 
create a Palestinian Investment Fund to acquire the land.  In 
addition, the area is in a "B" zone, a Palestinian zone with 
Israeli security, requiring double negotiations.  Bayburtlu 
added, however, that this is one of the few projects in the 
region that Tony Blair cites as achievable.  TOBB plans to 
negotiate with the World Bank and other NGOs to improve the 
infrastructure leading to the industrial zone area. 
Bayburtlu also noted that the location of the two sites is 
conducive to building a bridge between them in the future. 
 
Afghan/Pakistani ROZs 
--------------------- 
 
¶4. (SBU) During their November visit to Islamabad, TOBB 
leaders met with Pakistani Chambers of Commerce and 
government officials to discuss the proposed Reconstruction 
Opportunity Zones (ROZ) in the FATA region, which EEB A/S 
Sullivan mentioned during his September meetings with TOBB 
President Rifat Hisarciklioglu (ref D) and MFA U/S Ertugrul 
Apakan (ref E).  TOBB is interested in participating in such 
projects, but Bayburtlu admitted that their interest remains 
theoretical at this point.  Turkish companies operating 
currently in Pakistan do about $2 billion in business each 
year. 
 
¶5. (SBU) TOBB plans to organize a trip to Afghanistan by the 
end of January 2008.  After that, they hope to organize a 
trip to the U.S. with Pakistani and Afghan businessmen to 
meet with USG officials and U.S. businessmen.  Bayburtlu told 
us that TOBB believes it is important to get Afghan and 
Pakistani buy-in to the project.  In the meantime, he echoed 
a previous request made by Guven Sak, President of the 
Economic Policy Research Council of Turkey (TEPAV, a think 
 
ANKARA 00003014  002 OF 002 
 
 
tank connected to TOBB University) for any feasibility 
studies or reports available on business opportunities in the 
FATA region. 
 
Peace Through Economic Prosperity 
--------------------------------- 
 
¶6. (SBU) One of TOBB's guiding philosophies is that economic 
cooperation through trade and industry can lead to peace and 
understanding.  Their efforts to bring Israeli and 
Palestinian businessmen together are some of the most 
ambitious in the region.  We should foster TOBB's interest in 
the ROZs and Basra projects as well.  They have the 
institutional capability to mobilize significant Turkish 
investment money to make these sorts of projects successful. 
 
Visit Ankara's Classified Web Site at 
http://www.state.sgov.gov/p/eur/ankara/ 
 
WILSON