VZCZCXRO7523
PP RUEHIK
DE RUEHYE #0085/01 0500855
ZNR UUUUU ZZH
P 190855Z FEB 10
FM AMEMBASSY YEREVAN
TO RUEHC/SECSTATE WASHDC PRIORITY 0041
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 YEREVAN 000085 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ENRG ETRD GA TU AM
SUBJECT: TURKISH THINK TANK VISIT TO YEREVAN HIGHLIGHTS 
INTEREST IN OPEN BORDER 
 
YEREVAN 00000085  001.2 OF 002 
 
 
SUMMARY 
 ------- 
¶1. A visit to Yerevan by members of a Turkish economic think 
tank revealed strong interest among the Armenian business 
community, civil society and government for increased 
engagement -- both economic and political -- with Turkey. 
While some interlocutors lamented the hostile attitudes of 
some Turkish officials toward cross-border cooperation, few 
disputed that Armenia stands to benefit significantly from an 
open border.  The highlight of the visit was a forum 
headlined by the Prime Minister and Ambassador that received 
considerable attention from Armenian news media and favorable 
reactions from the business community and GOAM officials. 
End Summary. 
 
TEPAV VISITS YEREVAN 
-------------------- 
 
¶2. A delegation from the Economic Policy Research Foundation 
of Turkey (TEPAV), based in Ankara, visited Yerevan February 
10-12.  A non-profit, non-partisan think tank and research 
organization, TEPAV is exploring areas of possible 
cross-border economic cooperation in the Caucasus, and came 
to Yerevan on a fact-finding mission.  Members also plan to 
visit Tbilisi in the coming weeks.  In support of their 
visit, post arranged for a meeting with civil society 
representatives and also underwrote a forum organized by the 
American Chamber of Commerce (AmCham) where Guven Sak, 
TEPAV's Executive Director and a professor of economics at 
Ankara University, made a presentation on Turkey's experience 
with economic liberalization and open trade.  Other members 
of the TEPAV delegation included Erol Taymaz, an 
economics professor at Middle Eastern Technical University; 
and Burcu Gultekin Punsmann, a foreign policy analyst at 
TEPAV who has worked for nearly a decade on cross-border 
issues with Armenian counterparts. 
 
¶3. During their visit, the group met with civil society 
representatives, donor organizations, as well as deputy 
culture, transportation and energy ministers.  Professor Sak, 
positing that economic relations can precede political 
reconciliation, sought to identify areas of possible 
cooperation between Armenia and Turkey, even without a 
general opening of the border.  Examples included restoration 
of Armenian monuments in eastern Turkey; reviving of dormant 
transportation links between the two countries (in particular 
the Gyumri-Kars railway, extending to Nakhichevan); and 
cross-border energy sales. 
¶4. Noting that he has been working on similar 
Israeli-Palestinian joint initiatives for the past six years, 
Sak suggested there could be opportunities in tourism and 
culture.One project about which he was particularly 
enthusiastic was restoration of a historic bridge across the 
Akhurian River in Ani; one pillar stands on the Turkish side, 
the other on the Armenian side, and consequently would 
require the cooperation of both countries to undertake. 
 
RECEPTIVE BUT AMBIVALENT 
------------------------ 
 
¶5.  While most interlocutors expressed considerable interest 
in cooperation, many were doubtful about attitudes of both 
fellow Armenians and Turkish counterparts.  Both sides 
lamented the refusal of Turkish officials to acknowledge the 
Armenian origin of monuments in eastern Turkey, and the 
response of the Mayor of Kars to proposals for increased 
cross-border cooperation with Gyumri -- with which it was 
connected by rail until 1993: "Why should I eat with my 
enemy?"  Sak acknowledged that there is still a need for a 
change of attitudes in some parts of Turkish society. 
 
FORUM DRAWS A-LIST CROWD 
------------------------ 
 
¶6. The major event of the visit was a forum on February 12, 
organized (with Embassy funding) by the American Chamber of 
Commerce (AmCham), featuring opening remarks by both the 
Ambassador and Prime Minister Tigran Sargsian.  The 
Prime Minister warmly welcomed the TEPAV visit and encouraged 
continued cross-border dialogue.  Echoing the President's 
February 10 remarks at Chatham House, he emphasized the 
GOAM's commitment to an open border and good relations with 
Turkey.  During the following question period, he insisted 
that in a 21st century knowledge-based economy,  Armenia 
cannot afford the isolation that comes with a closed border. 
The Ambassador emphasized that an open border is a winning 
proposition for both countries.  Noting that increased 
economic cooperation can help drive the political process, 
she encouraged business organizations to become increasingly 
visible in pressing their governments to support the 
normalization process. 
 
YEREVAN 00000085  002.2 OF 002 
 
 
 
¶7. Professor Sak's presentation focused on Turkey's 
experience of economic liberalization and cross-border 
regionalism over the past 30 years.  While he did not dwell 
explicitly on Armenia-Turkey normalization, the numbers told 
the story: Turkey's policy of economic liberalization and 
open borders over the past 30 years has resulted in 
staggering growth - in GDP, creation of new businesses, value 
of exports, and increased value-added content as a percentage 
of exports.  Regions near newly-opened borders have been 
particularly successful.  The implication for Armenia was 
clear: Armenia stands to experience significant growth with 
an open border. 
 
¶8. The forum attracted approximately 150 persons from AmCham 
and other business organizations, several ambassadors, heads 
of international organizations and NGO members.  A large 
press contingent was in attendance, and the event received 
extensive and favorable coverage on Armenian television. 
Both the Embassy and AmCham have received considerable 
positive feedback from participants.  Video of the event, 
together with transcripts of the Ambassador's and Prime 
Minister's remarks, will be posted on the Embassy website. 
 
COMMENT 
------- 
 
¶9. While it was only one visit by a Turkish think tank still 
in the process of forming a plan of cross-border engagement, 
we were nonetheless heartened by the reception accorded the 
TEPAV delegation.  The large turnout at events, the Prime 
Minister's ready agreement to participate in the AmCham forum 
(he stayed for the entire event), and the thoughtful and 
productive tone of all the interactions make it apparent that 
whatever political challenges may exist, there is a strong 
constituency across various segments of Armenian society for 
increased engagement between Turkey and Armenia.  We hope to 
see more visits by other Turkish organizations and government 
representatives in order to break down barriers both physical 
and perceived.  END COMMENT. 
YOVANOVITCH