VZCZCXRO8027
PP RUEHIK
DE RUEHAK #1734/01 3381605
ZNR UUUUU ZZH
P 041605Z DEC 09
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 1396
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 03 ANKARA 001734 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB/S-EEE RICHARD MORNINGSTAR 
DOE FOR OFFICE OF RUSSIAN AND EURASIAN AFFAIRS: LANA EKIMOFF 
 
E.O 12958: N/A 
TAGS: ENRG ECON EPET SENV PGOV PREL TU
SUBJECT: GOT PROPOSED "VOLUNTARY PRINCIPLES ON OIL TANKER TRANSIT 
THROUGH THE TURKISH STRAITS" 
 
REF: 2004 STATE 178586 
 
ANKARA 00001734  001.2 OF 003 
 
 
¶1. (SBU) Summary:  At the December 3 meeting of the U.S. Turkey 
Energy Working Group, Hakki Akil, MFA deputy undersecretary for 
economic affairs and head of the Turkish EWG delegation, asked for 
U.S. consideration and support of proposed "Voluntary Principles on 
Oil Tanker Transit through the Turkish Straits."  MFA first proposed 
the principles in 2004 in response to environmental, human-health, 
safety, and commercial concerns.  At that time, the USG did not 
endorse the text.  At the December 3 meeting, we told MFA we would 
review the proposed principles and be prepared to discuss it at the 
next working group meeting.  End summary. 
 
¶2. (U) At the December 3 meeting of the U.S. Turkey Energy Working 
Group, Akil presented a draft of "Voluntary Principles on Oil Tanker 
Transit through the Turkish Straits" (full text in para 5).  Akil 
asked for U.S. support of the principles and said the GoT would seek 
the support of Black Sea coastal states and energy-sector companies 
as well.  Akil explained that the idea for the principles came from 
the "Voluntary Principles on Security and Human Rights," signed by 
the U.S., the U.K., companies in the extractive and energy sectors, 
and NGOs in December 2000.  He said the principles on the Turkish 
Straits were proposed in response to concerns about environmental, 
human-health, and safety risks related to tanker transit through the 
Straits, as well as companies' concerns that by building by-pass 
pipelines they would free up less-expensive shipping space in the 
Straits for competitors.  The U.S. side responded that we would 
consider the matter and be prepared to discuss it at the next 
working group meeting, which is tentatively scheduled for February 
2010 in Washington. 
 
¶3. (SBU) According to Akil, the MFA first proposed the voluntary 
principles in 2004, when Akil was deputy director general for 
energy, environment and water affairs.  According to reftel, we did 
not support the text at that time.  We proposed (a) completely 
delinking the oil tanker safety issue from the pipeline issue; (b) 
suggesting the GoT seek consultations among governments and industry 
on promoting safety for oil tanker shipping; and (c) urging the GoT 
and governments in littoral states to move forward with timely and 
transparent procedures for companies' proposed pipeline projects, 
with selection based on commercial feasibility.  According to MFA, 
the last discussions on the principles took place in August 2004, 
and the matter was not pursued further after Akil left his position 
at the end of that year. 
 
¶4. (SBU) COMMENT: Demand for tanker transit through the Straits 
continues to increase, and concerns about risks of an accident are 
valid.  Embassy supports re-engaging the Turks in a discussion on 
this issue, and would appreciate Department's evaluation of this new 
text.  We would be interested to know whether the voluntary 
principles, with revision, are something the USG could now support 
or whether we could cooperate with the Turks on other measures to 
address their concerns about tanker transit.  End comment. 
 
¶5. (SBU) Begin text quote: 
 
"Voluntary Principles on Oil Tanker Transit through the Turkish 
Straits" 
 
The Governments of the Republic of Turkey, [certain Black Sea 
Littoral States] [the European Union] and [the United States] 
("Governments"), energy sector companies producing petroleum in the 
various countries of the Former Soviet Union for export to world 
markets ("Companies") and civil society organizations ("NGOs") 
together ("Participants"), sharing an interest in protecting the 
environment and promoting human health, safety and security, have 
engaged in dialogue to produce a set of principles intended to 
minimize risks to those values arising from hydrocarbon tankers 
transiting the Turkish Straits ("the Straits"), without prejudice to 
the passage regime, while also ensuring uninterrupted flows of 
petroleum to world markets  ("Principles"). 
 
The Participants recognize the importance of cooperative action and 
the constructive role which industry and civil society can play 
together with governments to meet the challenge of defining these 
Principles.  The Participants further recognize the importance of 
continuing this dialogue and keeping under review these Principles 
in order to ensure their continuing relevance and efficacy. 
 
------------------------ 
 
Recognizing that there are limits to the number of hydrocarbons 
tankers that can transit the Straits; 
 
Considering that a secure and uninterrupted flow of energy has vital 
economic and national security significance to both energy producing 
and energy consuming States; 
 
ANKARA 00001734  002.2 OF 003 
 
 
 
Appreciating that the Companies are committed to operations that are 
commercially viable and consistent with internationally recognized 
standards of corporate governance and social responsibility; 
 
Acknowledging that the protection of the environment of the Straits 
and of the human health, safety and security of the local population 
is a fundamental value shared by the Participants; 
 
Noting that the City of Istanbul has been designated as a World 
Heritage Site of outstanding and universal value by the UNESCO World 
Heritage Convention and that the international community is thereby 
committed to cooperate in protecting it as a unique cultural 
heritage for the benefit of both present and future generations; 
 
Recalling that the Straits have previously experienced major 
shipping accidents resulting in the loss of life and environmental 
pollution and have threatened portions of the City of Istanbul World 
Heritage Site; 
 
Recognising that measures taken to minimize these risks, including 
the provision of systems and infrastructure to ensure safe passage 
of vessels through the Straits and the implementation of traffic 
controls, particularly during periods of poor weather and high 
traffic pressures, carry significant and quantifiable financial 
consequences for both the Turkish Government and the Companies; 
 
Considering that various players in the petroleum industry and 
governments have already initiated processes to define, develop and 
quantify the costs associated with constructing and operating 
various crude oil export transportation systems to by-pass the 
Straits consistent with the highest international standards and 
practices relating to the environment, health, safety and human 
rights; 
 
Bearing in mind that Governments may help ensure that hydrocarbons 
tankers that do transit the Straits adhere to standards of 'quality 
shipping' (such as those promoted by the EC Commission) through such 
means as port state control, environmentally-differentiated taxes 
and dues and interactive waterway management; 
 
Accordingly, the Participants hereby express their support for the 
following Voluntary Principles on Oil Tanker Transit through the 
Turkish Straits: 
 
Quantification of the True Costs of Crude Oil Tanker Transit through 
the Turkish Straits 
------------------------ 
 
There is an ascertainable limit to the number of tankers that can 
cost-effectively transit the Straits; 
 
There are quantifiable costs to the Turkish Government associated 
with investing in infrastructure including VTS and suitable tug 
boats, pilots and mobilising other equipment and related services to 
enable safe and efficient transit of ships; 
 
There are quantifiable costs to the petroleum industry associated 
with delays to shipping and lost production when the Straits are 
closed or hydrocarbons tanker transit constrained; 
 
Accordingly, the Companies agree to work together to develop a 
methodology for use by the Participants to quantify the following: 
 
-- The value of production that is lost and the cost of incremental 
shipping delays to producers of crude oil; and 
-- The cost to crude oil refiners who are forced to buy alternative 
crude oil as a result of such shipping delays and lost production. 
 
The Participants further agree to develop a methodology to ascertain 
a limit to the number of tankers that can cost-effectively transit 
the Turkish Straits. 
 
Pursuit of Turkish Straits By-pass Alternatives 
------------------------ 
 
-- The Participants agree that priority should be given to 
maximizing the use of existing crude oil export transportation 
systems that by-pass the Straits; 
-- The Participants further agree to facilitate and support the 
development of new-build crude export oil transportation systems 
that by-pass the Straits and are constructed and operated in 
accordance with the highest international technical, safety, 
environmental, labour and human rights standards and practices; and 
-- The Companies agree to seek use of all available capacity in such 
crude oil export transportation systems prior to considering 
shipping crude oil through the Straits. 
 
ANKARA 00001734  003.2 OF 003 
 
 
 
Cooperative Government Measures 
------------------------ 
 
The Governments agree to consider and discuss the adoption of 
cooperative measures, consistent with the Montreux Convention and 
other rules of international law, to encourage ships transiting the 
Straits to adhere to standards of 'quality shipping' (such as those 
promoted by the EC Commission) through such means as coordinated 
port state control of ships intending to pass through the Straits, 
environmentally-differentiated taxes and dues and waterway 
management offering advantageous time slots to quality ships; 
 
Monitoring and Review 
------------------------ 
 
The Participants agree to monitor adherence to these Principles and 
to transparently report on compliance. They agree to review them 
periodically and revise them as necessary.  End quote. 
 
SILLIMAN