VZCZCXRO1537
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHIT #0091 0650530
ZNR UUUUU ZZH
P 060530Z MAR 09
FM AMCONSUL ISTANBUL
TO RUEHC/SECSTATE WASHDC PRIORITY 8811
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHDA/AMCONSUL ADANA PRIORITY 2389
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASH DC PRIORITY
RUEKJCS/DIA WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

UNCLAS ISTANBUL 000091 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON ENRG PGOV PHUM TU
SUBJECT: MINISTERS WOO ISTANBUL BUSINESS COMMUNITY IN 
ADVANCE OF MUNICIPAL ELECTIONS 
 
REF: ISTANBUL 86 
 
¶1. (SBU) Summary:  In recent remarks to the Istanbul business 
community Foreign Minister Babacan, Energy Minster Guler and 
State Minister for EU Affairs Bagis underscored the 
government's adherence to Western political ideals including 
democracy, human rights and free market principles.  The 
ministers' comments, which preceded the March 9 start of the 
official campaign period, appeared designed to reassure the 
Istanbul business community of the government's commitment to 
Western ideals and to outline accomplishments in the area of 
energy and EU policy in the run up to municipal elections on 
March 29.  Given that a recent AmCham survey showed a 
significant drop in confidence in government economic policy 
making, these overtures may be an attempt to reassure an 
increasingly skeptical business community. End Summary. 
 
¶2. (U) On February 25, Foreign Minister Ali Babacan in 
remarks to the Turkish American Business Council (TAIK) 
repeatedly stressed "shared political values" including human 
rights, the rule of law and free market economies. Babacan 
said the top policy issues of the U.S. and Turkey were 
"almost identical."  He was optimistic with regard to the new 
administration's foreign policy goals and expressed a desire 
to work closely with the United States on regional issues. 
 
¶3. (U) During a February 27 address to the annual meeting of 
the International Investors Association (YASED), recently 
appointed State Minster for EU Affairs Egemen Bagis painted 
an optimistic picture of government of Turkey (GOT) 
accomplishments  in support of Turkey's bid for EU 
membership.   He highlighted advances in the areas of human 
rights (TRT-6 Kurdish language programming, greater emphasis 
on gender equality and the Prime Minister's outreach to the 
Alevi community), cultural affairs (restoration of the Hagia 
Sofia and rehabilitation of dissident poet Nazim Hikmet), the 
environment (accession to the Kyoto Protocol) and 
southeastern Turkey (significant improvements in the areas of 
health care and basic services as well as an increased 
emphasis on local control of projects).  Bagis encouraged 
YASED members to convey to their board members and CEOs the 
crucial need for Turkey to be admitted to the EU. 
 
¶4. (U) Energy Minister Guler focused on Turkey's emerging 
role as an energy hub during his February 27 remarks at the 
American Business Forum Turkey (ABFT) gala dinner.  He called 
on partners in the Nabucco pipeline to meet their obligations 
to convey gas from the Caspian basin to Europe.  He described 
Nabucco as one of Europe's best hopes for limiting dependence 
on Russian gas.  Guler noted that Turkey needs $125 billion 
dollars in energy investments, including $105 billion in 
electricity projects, by 2020.  He urged American companies 
to invest in Turkey's energy sector, which he claimed "is not 
affected by the global financial crisis." 
 
¶5. (SBU) Comment:  Not surprisingly, the ministers' remarks 
advertised the success of the current government in dealing 
with the EU and the U.S. as well as in tackling difficult 
issues such as energy.  Discussions of the effects of the 
ongoing economic crisis were kept to a minimum.   A recent 
investment climate survey conducted by ABFT (reftel) 
demonstrates a significant loss in confidence in the ruling 
party following the 2007 general elections.  These 
pre-election comments by ministers appear to have been at 
least in part designed to reassure an increasingly skeptical 
and demoralized business community that AKP is committed to 
Western ideals, can point to some concrete accomplishments on 
the road to EU accession and, at the end of the day, is 
better than any other alternative.  End Comment. 
 
 
Wiener