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Anadolu Agency: News in English, 00-11-30

Anadolu Agency: News in English Directory - Previous Article - Next Article

From: The Anadolu Agency Home Page at <http://www.anadoluajansi.com.tr/>

Anadolu Agency

ANADOLU AGENCY

NEWS

30 NOVEMBER 2000 Thursday


CONTENTS

  • [01] TURKEY-PRESS SCAN
  • [02] U.S. STATE DEPARTMENT SPOKESMAN BOUCHER SAYS
  • [03] FOREIGN MINISTRY UNDERSECRETARY LOGOGLU MEETS WITH GREEK
  • [04] 21ST CONGRESS OF ASSEMBLY OF TURKISH-AMERICAN ASSOCIATIONS TO

  • [01] TURKEY-PRESS SCAN

    These are some of the major headlines and their brief stories in Turkey's press on November 30, 2000. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.

    HURRIYET (LIBERAL)

    WORLD BANK BOOSTS MORALE OF TURKEY
    Johannes Linn, the Vice President of the World Bank who is currently in Turkey said that they are proud of supporting the economic programme of the Turkish government. ''Whatever will the atmosphere in Turkey be, we will continue to support Turkey,'' said Linn. Linn added that important progress was recorded recently in implementation of the economic programme of the government.

    MILITARY RESPONDS TO MIT
    The military flank of the National Security Council (NSC) responded to the statements of the National Intelligence Agency (MIT) by submitting a report of 14 pages. The military said in the report that it thinks Kurdish broadcasting can disturb the unitary structure of the state.

    MILLIYET (LIBERAL)

    QUESTIONNARIES OF MHP CONGRESS ANNOUNCED
    The results of the questionaries filled in by the delegates of the Nationalist Movement Party (MHP) during its great congress held three weeks ago, were announced. MHP delegates think that the first thing that must be done by MHP is to overcome the problems of unemployment and inflation in the country. The execution of the death sentence given to Abdullah Ocalan, the head terrorist and the problem of religious head scarf came after the problems of unemployment and inflation. More interestingly, these two issues were added to the questionnaries by the delegates themselves.

    DIC BILGIN GOES BANKRUPT
    Dinc Bilgin, who started to publish Sabah newspaper 15 years ago by borrowing money from others, went bankrupt and transferred Sabah. In 15 years, he bought many other newspapers and magazines and owned a TV channel. Now, the new owner Sabah newspaper is the consortium headed by Mehmet Emin Karamehmet, the boss of Cukurova Holding.

    SABAH (LIBERAL)

    ARMY DOESN'T AGREE WITH ATASAGUN
    The commanders of the Turkish Armed Forces who attended the National Security Council meeting told the members of the government that they didn't share the views of Senkal Atasagun, the Undersecretary of National Intelligence Agency(MIT) which were printed in the newspapers last week. The commanders said in the meeting that they weren't against the accession of Turkey to the European Union(EU), but wouldn't agree on giving concessions on the structure of the unitarian state. The government extended supported for the remarks of Atasagun on Kurdish broadcasts, and the execution of Abdullah Ocalan, the head of terrorist organization.

    PREMIER ECEVIT MEETS WITH HIGH RANKING ECONOMY BUREAUCRATS
    Prime Minister Bulent Ecevit late on Wednesday had a meeting with the high ranking bureaucrats of economy to discuss the recent economic crisis. Husamettin Ozkan, the Deputy Prime Minister; Sumer Oral ,the Minister of Finance; Selcuk Demiralp, the Undersecretary of Treasury; Gazi Ercel, the Governor of the Central Bank; and Zekeriya Temizel, the Chairman of the Banking Regulation and Audit Board; attended the meeting. Ecevit and the bureaucrats discussed the recent crisis in the economy and the outcomes of the summit which was held in Istanbul regarding the banking sector. The bureaucrats underlined the importance of five issues in the meeting. These issues are; attracting foriegn investment to Turkey, preparing structural and financial reforms, compensating the decrease in the foreign currency reserves of the Central Bank. Premier Ecevit will declare the measures that will be taken on the issue on Thursday.

    CUMHURIYET (LEFT)

    NEW MEASURES TO BE TAKEN
    Selcuk Demiralp, the Undersecretary of the Treasury said that the loans that will be taken from the IMF and the World Bank can be used in December. Not giving detailed information about the amount of the loans, Demiralp said that they have not reached a consensus on this issue yet. Demiralp stated that additional loans can be taken from IMF and he added that the government will announce its new measures soon regarding the fluctuations in financial markets.

    NSC DISCUSSES ACCESSION PARTNERSHIP DOCUMENT
    The National Security Council (NSC) discussed the demands of the European Union (EU) listed in the Accession Partnership Document prepared for Turkey such as cultural rights, Kurdish broadcasting, solution of the Cyprus and Aegean problems. The NSC also took up the possibility of an energy suffering. A report was submitted to the NSC saying that the demands of the terrorist organization PKK which tries to politicize itself are wanted from Turkey by almost every EU country.

    RADIKAL (LEFT)

    CIVIL SERVANTS NOT TO WORK TOMORROW
    Civil servants who are members of the 15 labour unions which are all parties to the ''Labour Platform'' will go on a strike tomorrow and they won't work. Health, education and transportation services will be paralysed in the country.

    ROOMS CAN TURN INTO CELLS
    The Justice Ministry permitted the press members to visit the F type Sincan pirson yesterday. Justice Minister Hikmet Sami Turk reiterated his call to inmates to end their hunger strikes and death fasts. Meanwhile, Ali Suat Ertosun, the Director General of Prisons said that the single rooms can also be used as cells. ''Those who have indisciplinary actions, will be confined in these cells,'' he added.

    YENI BINYIL (LIBERAL)

    WORLD BANK CONTINUES TO SUPPORT TURKEY
    Johannes Linn, the Vice President of the World Bank said that they will continue to support Turkey as long as it implements the disinflationary programme also backed by the IMF. Noting that Turkey's future is promosing, Linn said that there can be some fluctuations or instability in the medium term, Linn stressed that the government sucessfully implements the economic programme.

    ARMY DOES NOT SHARE VIEWS OF MIT
    The commanders responded to the support the government gave to the statements of Senkal Atasagun, the Undersecertary of the National Intelligence Agency (MIT) by submitting a report to the government. The commanders told the civilian members of the National Security Council (NSC) that they don't agree with Atasagun, who said that there should be Kurdish broadcasting in Turkey. The report submitted to the government by the military, talks about the activities of the terrorist organization PKK.

    TURKIYE (RIGHT)

    LINN DEPUTY CHAIRMAN OF WORLD BANK SAYS TURKEY TO BECOME LEADER OF
    REGION

    Johanness Linn, the Deputy Chairman of the World Bank, said Turkey would become a regional leader in the world economy. Noting that they were proud of giving support to the economic programme of the government, Linn said important steps were taken in the privatization process. Linn pointed out that there might be ups and downs in the economy and that no matter what happens, they would continue to support Turkey.

    ANKARA SUBMITS STRONG NOTE TO EP
    Ankara submitted a strong note to the European Parliament(EP) regarding the attack of two terrorists of illegal DHKP-C organization while Foreign Minister Ismail Cem was delivering a speech at the EP. Nihat Akyol, the representative of Turkey to the European Union(EU) made an application to the EP and requested the capture of two assailants.

    ZAMAN (CONSERVATIVE)

    284 TURKISH TRADEMARKS TO BECOME INTERNATIONAL
    A total of 284 Turkish trademarks would become international with the support of the state. A ''trademark incentive'' would be given to 284 Turkish companies. This initiative was launched to increase the export income with the export of trademark goods. According to the new implementation, the state will pay the 50 percent of the expenses of the international promotions of the products. Companies operating in various fields such as food sector, textiles, ready-to-wear, chemistry, electric and electronic sector will benefit from the incentive. Matras Deri Inc., Dardanel, Arcelik, Altinyildiz, and Vestel are among these companies.

    [02] U.S. STATE DEPARTMENT SPOKESMAN BOUCHER SAYS

    THEY HAVE ALWAYS SUPPORTED TURKEY'S EU MEMBERSHIP PROCESS
    WASHINGTON D.C. - The U.S. stressed once again the support it extended to Turkey's membership process to the European Union (EU).

    Upon a question, the U.S. State Department Spokesman Richard Boucher said on Thursday that they have always supported Turkey's membership process to the EU and they will continue to support it. He said the U.S. thinks that this is a very important process.

    Boucher stressed that the U.S. Secretary of State Madeleine Albright carried out intensive contacts about Turkey's membership process to the EU during the Organization of Security and Cooperation in Europe (OSCE) Foreign Ministers meeting held in Vienna. Albright met with both Foreign Minister Ismail Cem and the Greek Foreign Minister George Papandreou and talked about this issue, Boucher said and indicated that Albright talked about the status of Turkey, the approach towards Turkey and the methods of further improving this membership process with foreign ministers of European countries.

    Boucher remarked that that the U.S. government is in contact with many European officials through its embassies and other communication methods about the issue, adding that the U.S. government's support to the EU membership of Turkey is known very well.

    [03] FOREIGN MINISTRY UNDERSECRETARY LOGOGLU MEETS WITH GREEK

    FOREIGN MINISTER PAPANDREOU
    ATHENS - Foreign Ministry Undersecretary Faruk Logoglu met with the Greek Foreign Minister George Papandreou on Thursday.

    Logoglu who came to Athens as part of his visit to the capitals of the EU member countries, met with Papandreou for 45 minutes.

    Logoglu said after the meeting that ''I conveyed the views of Turkey in detail. The attitude of Mr. Papandreou was very positive. We'll see the result.''

    Logoglu will proceed to Rome, Italy from Athens.

    [04] 21ST CONGRESS OF ASSEMBLY OF TURKISH-AMERICAN ASSOCIATIONS TO

    START IN WASHINGTON
    WASHINGTON - The 21st annual General Congress of the Assembly of the Turkish-American Associations (ATAA) will start in Washington D.C. on Thursday.

    The political, economical, domestic and foreign relations of Turkey will be discussed in the congress where new strategies will also be determined.

    A conference titled ''Turkey in the New Millennium: Economic, Political Trends and the Future'' which is organized with the support of the Institute of Turkish Studies, will be held in Washington D.C. on Thursday.

    Ilter Turkmen and Emre Gonensay, the former Foreign Ministers; Tony Blinken, the Senior Director of the National Security Council for European Affairs; Doug Bereuter, the Republican deputy of Nebraska; and Mark Parris, the former Ambassador of the U.S. to Turkey; will participate in the conference.

    During the conference, Mark Parris will be presented with a medal of merit for his contributions to the Turkish-American relations.

    In the second day of the conference, Baki Ilkin, the Ambassador of Turkey in Washington, and Robert Pearson, the Ambassador of the U.S. to Turkey will evaluate the developments in the relations of two countries.

    A panel discussion titled Security, Trade, and Turkey at a Geopolitic Junction will be held in the U.S. Congress with the support of the American- Turkish Council(ATC). Sukru Elekdag, the former Ambassador of Turkey to the U.S. and some advisors of the members of the Congress will present their views on the issue in the panel discussion.

    The representatives of the Turkish associations in the U.S. will organize a meeting to exchange views, and to form new strategies on the issues regarding Turkey and the Turkish-American publics.

    ATAA will present ''The American Friend of Turkey'' award to Indiana Deputy Dan Burton, who supported the Turkish side while the discussions on the resolution on so-called genocide on Armenians in the House of Representatives.

    Tom Lantos, the deputy of California will also be given the same award.

    Jak Kamhi, the Turkish businessman will be given ''ATAA Sukru Elekdag'' award for his contributions to the promotion of the joint history of Turkish people and the Jews, and for his contribution to Turkish-Israeli relations.

    Tolga Cubukcu, who is the chairman of the ATAA for two years, will hand over the chairmanship to Orhan Kaymakcalan at the end of the congress.

    -TURKEY'S GROWTH RATE ANNOUNCED AS 6.9 PERCENT IN
    THIRD QUARTER OF 2000
    ANKARA - The growth rate in the third quarter of 2000 was announced on Thursday as 6.9 percent when compared to the same period last year.

    State Statistical Institute (DIE) announced the same day the results of the Gross National Product (GNP) in the third quarter of 2000 (July-September) according to temporary calculations.

    GNP in the third quarter of 2000 has been 40,8 quadrillion liras in current prices and the GNP has been 38,1 trillion liras at constant prices of 1987

    The growth rate in current prices has been 54.4 percent in account prices and 6.9 percent in constant prices in the third quarter of 2000 when compared to the same period last year.

    -GAP REGION EXPORTS 82.5 MILLION U.S. DOLLARS WORTH OF AGRICULTURAL
    AND ANIMAL PRODUCTS TO ITALY, SYRIA, AND GERMANY
    GAZIANTEP - Agricultural and animal products exportation worth of 82 million 548 thousand U.S. dollars was made from the Southeastern Anatolia Project(GAP) region to Italy, Syria and Germany in the first ten months of the year.

    The data of the Association of the Southeastern Anatolia Exporters show that an exportation worth of 33 million 62 thousand U.S. dollars was made to Italy while an exportation worth of 27 million 262 thousand U.S. dollars was made to Syria in the first ten months of the year.

    An exportation worth of 22 million 224 thousand U.S. dollars was made to Germany during the same period.

    Italy, Syria, and Germany ranked the first in the exportation of textile products. Synthetic yarn, cotton yarn, dried apricot, plastic sack, sunflower oil, cotton and knitted textile products, olive oil, pistachio, chickpea and lentil are the leading products in exportation to these countries.

    -GROWTH RATE IN FIRST NINE MONTHS IS 4.4 PERCENT
    ANKARA - The State Institute of Statistics (DIE) announced on Thursday that the growth rate with fixed prices was 6.9 percent in the third quarter of 2000, adding that the growth rate in the first nine months of 2000 was 5.4 percent.

    According to DIE's temporary calculations for the third quarter of 2000, the Gross National Product (GNP) was 88 quadrillion 576 trillion 79 billion Turkish Liras (TL) with current prices.

    The GNP was equal to 89 trillion 297 billion according to the fixed prices in 1987.

    Meanwhile, the Gross Domestic Product (GDP) in the third quarter was calculated to be 7.4 percent with fixed prices.

    The growth rates of some sectors in the third quarter of 2000 are as follows:

    SECTORAL GROWTH RATE
    (Percent)

    Name of Sector 1st term 2nd term 3rd term total

    ---------------- -------- -------- -------- ----
    Agriculture 1.4 1.9 1.9 1.8

    Industry 2.8 4.0 9.8 5.7

    Construction -2.1 2.9 7.9 3.6

    Trade 9.9 10.6 12.2 11.1

    Transportation & Comm 4.7 4.5 4.0 4.4

    Financial Organizations 2.2 1.6 1.9 1.9

    Real Estate Ownership -1.1 -1.1 0.1 -0.7

    Liberal Profession 3.9 4.6 6.3 5.2

    State Services 2.2 2.1 2.3 2.2

    Non-Profittable Organ. 0.7 -0.4 0.7 0.4

    Import Tax 32.6 26.5 25.0 27.7

    GDP 5.5 6.0 7.4 6.5

    GNP 4.1 4.6 6.9 5.4

    -PRIME MINISTER ECEVIT: ''SITUATION TAKEN UNDER CONTROL''
    ANKARA - Prime Minister Bulent Ecevit said on Wednesday that economy experienced a crisis in the past few days, adding that, ''however, the situation has been taken under control.''

    Prime Minister Ecevit spoke to journalists as the Council of Ministers meeting continues. Stressing that domestic and foreign markets should not feel concern, Ecevit said the Council of Ministers decided to make a statement to the public to this end.

    Ecevit said Council of Ministers' decision, regarding privatization of Telekom, was opened to signature, adding that, ''this decree foresees the block sale of 33.5 percent of the Turk Telekom's shares and granting the majority in the executive committee to the strategic common representatives. Telekom Privatization Committee will determine the conditions of the tender and announce to the public till December 15, 2000.''

    Ecevit said the Council of Ministers also decided to take several measures regarded with the year 2001 within the framework of the program that has been carried out in harmony with the International Monetary Fund (IMF) and the World Bank.

    Ecevit announced the decisions and said President Ahmet Necdet Sezer today signed the draft regarded with the Tax Law, which is included among the measures that were required to provide the general balance of the public. Ecevit said decrees, which are needed for the implementation of this law, was opened to the signature of the Council of Ministers, adding that these decisions will be disclosed by the Finance Minister soon.

    Prime Minister Ecevit said the decree, which was required for the implementation of the law, regarded with re-structuring and privatization of public banks, was opened to the signature of Council of Ministers.

    Stressing that there should not be any doubt that the government will continue to take every kind of measures, related with the economy policies, in time and rapidly, Ecevit said this program should be successful to get rid of inflation.

    Ecevit said, ''I would like to stress once again that our government backs this economic program with determination.''

    -INCREASE IN INDUSTRY PRODUCTION
    -INDUSTRY PRODUCTION INCREASES 9.7 PERCENT IN JULY-SEPTEMBER
    PERIOD WHEN COMPARED WITH THE FIGURES OF LAST YEAR SAME PERIOD
    ANKARA - Turkey's industry production increased 9.7 percent in July- September period, and 5.6 in January-September period when compared with the figures of last year same periods.

    According to the data of State Statistics Institute (DIE) there was 7.3 percent decrease in public sector in the first nine months of the year. Increase in private sector was 11.1 percent.

    As industry production of private sector increased in January-September period, public industry production decreased apart from electricity, gas and water sector.

    According to the data, production in mining sector in the first nine months increased 5.5 percent in private sector, yet decreased 4.2 percent in public sector. Manufacturing sector production decreased 11.9 percent in public, and increased 10.6 percent in private sector.

    Production increase in electricity, gas and water sector in public was 3.2 percent, and 30.8 percent in private sector. The total production increase was calculated as 8.6 percent.

    Turkey's industry production in total was 9.7 percent in July-September period, and its production increase in private sector reached 14.1 percent. In this period, the industry production in public decreased 1.2 percent.

    In the first nine month of the year, mining sector production decreased 4.8 percent, manufacturing industry production increased 10.8 percent, and production in gas and water sector increased 8.7 percent.

    -COUNCIL OF MINISTERS MEETING ENDS
    ANKARA - Tunca Toskay, the State Minister and Government Spokesman, said on Thursday that, ''we wish the hunger strikes and death fasts in prisons will end without any need for intervention.'' Toskay said, ''in case the activities are not ended despite all the good will, the officials will do what is required, including the intervention.''

    Toskay said economic issues, and hunger strikes and death fasts in prisons were discussed during today's Council of Ministers meeting.

    Pointing out that Prime Minister Bulent Ecevit made a statement about economic issues at the beginning of the meeting, Toskay said almost all the decrees, which Prime Minister Ecevit mentioned, were opened to the signature in Council of Ministers and that those signatures are about to be completed.

    Toskay said they felt sorrow over the hunger strikes and death fasts in prisons, adding that, ''we wish the activities will be ended without any need for intervention. We underline that relatives of those who attended the activities should act with common sense. Justice Minister Hikmet Sami Turk said every kind of measures have been taken for the medical treatment of the inmates who participated in the activity under the pressure of organization. Officials will do what is required in case the activities are not ended despite the good will.''

    Toskay said Council of Ministers decided that all the measures should be taken rapidly to put F type prisons into service soon, adding that the Justice Ministry will do what was required in this respect.

    On a question on the privatization of Turk Telekom, Toskay said that Premier Bulent Ecevit made the necessary statement regarding this issue.

    Toskay said, ''the government has taken a decision. We should scrutinize this issue as an element of the goverment and the economic policy that is being implemented rather than the issue concerning the ministers.''

    Responding to another question, Toskay said that all the decrees on the measures to be taken regarding the taxes has been opened to the signature of the ministers.

    Toskay noted that the letter sent by the World Bank evaluated the economy policies of the government so far and said that the policy was very positive.

    When reminded about the strike of the confederations which are the members of the Labour Platform and asked about the evaluation of the government, Toskay said, ''this issue was not included in the agenda of our meeting. But, we took up the problems that the actions which are made against the laws can cause and we decided to take the necessary measures.''

    Touching on the amnesty, Toskay said that amnesty did not come to the agenda when the unrest in prisons was discussed.

    Responding to a question, Toskay said, ''the Health Ministry will take the necessary measures regarding the intervention of the doctors. But, the officials of the state always have to end the protests which are against the laws by fulfiling their responsibilities. They will also fulfil their responsibilities if no result is obtained from the good will initiatives.''

    When asked whether or not this covers an intervention, Toskay said, ''of course.''

    When a journalist reminded him the elements stated in the letter of James Wolfensohn, the World Bank Chief, and the statements made by Premier Bulent Ecevit coincide with each other, Toskay said that it was not right to link these two statements.

    Toskay said that the efforts of the ministers concerned with Turk Telekom target at reaching the best result for Turkey.

    ''The two ministers are exerting efforts for the things to be done to achieve in the tender this time. The two ministers had a meeting to this end. They had a compromise in an important point and agreed that this is the best solution. I think this tender will be very successful this time,'' Toskay added.

    -STATEMENT FROM CENTRAL BANK
    ANKARA - Central Bank said on Thursday that functioning of the system was provided due to the measures that were taken after the developments that were experienced in the markets in the past few days. It said they should again return to basis of money program.

    In this direction, the Central Bank, in order to set up a reference point in the markets, decided to freeze the ceiling value at a new point which the extend net domestic assets can cover.

    Accordingly, as of today, end of day extra repo will be not be made, and the new reference point in Net Domestic Assets will be the extend that was reached as of November 30, 2000.

    Starting as of December 1, 2000, the liquidity policy of the Central Bank will be carried out basing on this new reference point in Net Domestic Assets.

    In the direction of this decision, which has been taken in agreement with the IMF, additional liquidity to the system will be provided in return for foreign currency starting as of this date.

    -LETTER THAT WORLD BANK CHIEF WOLFENSOHN SENT TO PREMIER ECEVIT
    SAYS TURKEY IS FACE TO FACE WITH A STRONG THREAT THESE DAYS
    ANKARA - James Wolfensohn, the World Bank Chief, sent a letter to Premier Bulent Ecevit on Thursday in which he said that Turkey is face to face with a strong threat resulting from the last crisis which caused sharp increase in domestic financial markets and interest rates and caused decrease in foreign reserves.

    Wolfensohn said that this situation can be linked with the conditions that negatively affected Turkey like the high oil prices and the Euro's losing value against the dollar in the world economy and the high interest rates resulting from the market debts.

    They believe that the crisis in Turkey is also connected with the indefiniteness among the investments within the framework of the economic policy of the government for 2001, Wolfensohn noted.

    Wolfensohn stated that an urgent statement that will be made regarding the economy policy of 2001 until the end of this weekend, will be an indicator that the government will continue to be determined about the markets.

    They think that a strong financial measures package will cover the attractive tender conditions including the certain operation right for a strategic partner of the Turk Telekom, and the increases which will end the financial losses of the Turkish Electricity Inc. (TEAS), Wolfensohn said.

    Wolfensohn noted that the implementation of these policies with determination will increase the credibility of the program in the market in this crisis.

    Touching on the financial markets, Wolfensohn said that the law on the reconsturction of the public banks and privatization which has recently been adopted by the parliament, is a significant forward step.

    Wolfensohn pointed out that they hope that the government will rapidly pass the decree with the power of law which will form the institutional frame of the reconstruction.

    The implementation of this decree will increase the sign that the government will give to the markets that it is committed to the reforms and thus, it will be the main element of the program that will be supported by the financial sector adjustment loan given by the World Bank, Wolfensohn said.

    Wolfensohn noted that they want to assure that they will continue to support the reform program of Turkey and that the developments marked by the Turkish government encouraged them.

    They wish to improve their partnership with Turkey, Wolfensohn stated.

    Wolfensohn said that during his last visit to Turkey in May, he agreed with the Turkish officials that it would be beneficial to exchange views from time to time regarding the developments marked in Turkey's economic reform program.

    Turkey has marked important steps under the leadership of Ecevit in the implementation of reforms for six months, Wolfensohn stressed.

    Wolfensohn pointed out that the sharp decrease in inflation, the betterment in the public sector balances and the strong economic betterment are very significant.

    The developments recorded in banking sector, agriculture, social security, and structural reforms are also important, Wolfensohn noted.

    These reforms attracted the international community and contributed to the laying the groundwork for sustainable growth in Turkey, Wolfensohn stated.

    Wolfensohn added that they believe that the government is determined and committed to overcome the difficulties faced during the implementation of the reform program.

    -TUSIAD DELEGATION LEAVES FOR FRANCE
    ISTANBUL - A delegation of the Turkish Industrialists' and Businessmen's Association (TUSIAD) left on Thursday for Paris, France.

    The delegation comprised of Erkut Yucaoglu, the Chairman of the TUSIAD Executive Board; Aldo Kaslowski, the Deputy Chairman of TUSIAD; Haluk Tukel, the TUSIAD Secretary General; and Bahadir Kaleagasi, the TUSIAD's Representative to European Union (EU); will attend the Union of Industrial and Employers' Confederations of Europe (UNICE) meeting.

    A statement of TUSIAD said that the delegation will give the message during its contacts that the Accession Partnership Accord should be approved as soon as possible and the process should continue.

    The statement noted that the delegation will meet with Lionel Jospin, the French Prime Minister, and Laurent Fabius, the French Economy Minister, within framework of its contacts in France.

    The new strategies of the European private sector regarding the information technologies, new economy, migration policies and international trade will be fixed during the meeting, the statement said.

    The statement pointed out that the messages of the European business world regarding the EU summit that will be held in Nice, France, a week later, will be approved during the meeting.

    Touching on the messages that the TUSIAD delegation will give to France and European private sector, the statement said, ''the inclusion of new political conditions to the Accession Partnership Accord is considered as a mistake in method. That the document does not serve the desired targets should not be ignored. A successful integration process which is carried out by the EU with political determination, carries a role which facilitates the implementation of economic and political reforms which are expected from Turkey and the formation of the rapproachment ground with Greece.''

    -STATEMENT FROM CENTRAL BANK (2)
    ANKARA - Central Bank said on Thursday that functioning of the system was provided due to the measures that were taken after the developments that were experienced in the markets in the past few days. It said they should again return to basis of money program.

    In this direction, the Central Bank, in order to set up a reference point in the markets, decided to freeze the ceiling value at a new point which the extend net domestic assets can cover.

    Accordingly, as of today, end of day extra repo will be not be made, and the new reference point in Net Domestic Assets will be the extend that was reached as of November 30, 2000.

    Starting as of December 1, 2000, the liquidity policy of the Central Bank will be carried out basing on this new reference point in Net Domestic Assets.

    In the direction of this decision, which has been taken in agreement with the IMF, additional liquidity to the system will be provided in return for foreign currency starting as of this date.

    The statement, made by the Central Bank, clarified the reasons of the developments experienced in the markets in the recent days, and disclosed the measures taken within this framework.

    The statement recalled that, ''realization of the current deficit a little above what was foreseen in the program that was implemented, and seasonal decrease in foreign borrowing, which has an important share in finance of this deficit,'' caused liquidity problem as a characteristic of the money program that is under implementation.

    The statement said uneasiness of the foreign investors in markets like Argentina and similar developing markets, also prevented the entrance of the foreign sources to the system that may overcome this liquidity.

    ''As a result of this, an activity started in financial markets starting as of the second half of November. Interests, which were formed in money markets, increased because of the liquidity problem, and this caused increase in secondary market interest rates of the State Domestic Borrowing bonds,'' it said.

    Together with this activity, the statement said, confidence crisis which erupted among the market actors, increased the influence of this temporary liquidity problem on the interests. On the other side, short tem foreign market, which was affected by these developments, preferred to go out from our country despite the increase in interests.

    The statement said the Central Bank formed its money policy of the term in agreement with the International Monetary Fund, adding that Turkish Lira, and exchange funds were provided without considering Net Domestic Assets target. It said as a result of this, extend of Net Domestic Assests extend increased and reached one quadrillion and 944 trillion Turkish lira as of November 29.

    The statement emphasized that the Central Bank gave the TL liquidity that the system needs, in three ways.

    The statement said, ''due to the bank liquidity requirement, the free deposit holding term was increased from one week to six weeks and thus, the initiatives on a liquidity source of the banks which is worth of almost one billion U.S. dollars, were increased. It created additional funding opportunities with the Central Bank to prevent the lack of confidence between the market actors from causing a block in the markets and it acted as a bridge among the market actors.''

    ''As it was seen in the Russian crisis, additional liquidity opportunities were created by realizing revocation tenders in coordination with the Treasury to prevent the movements which will remove the sensitivity of the system to the interests. The system was operated with the measures taken,'' the statement added.

    The Central Bank said that they should again return to basis of money program following these statements.

    In this direction, the Central Bank, in order to set up a reference point in the markets, decided to freeze the ceiling value at a new point which the extend net domestic assets can cover.

    Accordingly, as of today, end of day extra repo will be not be made, and the new reference point in Net Domestic Assets will be the extend that was reached as of November 30, 2000.

    Starting as of December 1, 2000, the liquidity policy of the Central Bank will be carried out basing on this new reference point in Net Domestic Assets.

    In the direction of this decision, which has been taken in agreement with the IMF, additional liquidity to the system will be provided in return for foreign currency starting as of this date.

    The Central Bank statement also touched on the facilities brought to make the liquidity flow in the system continual.

    To this end, the limits applied for overnight transactions among the banks were increased.

    The statement added that the Central Bank believes that the market actors in Turkey will fulfil their responsibilities regarding the implementation of the program.

    (End)

    -PRIME MINISTER ECEVIT MEETS WITH FM CEM
    ANKARA - Foreign Minister Ismail Cem on Thursday gave information to Prime Minister Bulent Ecevit about his contacts related with the Euroean Union (EU) and the developments in the Middle East.

    FM Cem responded to the questions of reporters following his meeting with Ecevit.

    Cem said, ''I had met with many EU ministers the previous day. I gave information to the Prime Minister about my contacts. I also briefed about the developments related with the Middle East.''

    Pointing out that Nebil Shaat, the Palestinian International Cooperation and Planning Minister, was currently in Turkey, Cem said he also gave information to Prime Minister Ecevit about this visit.

    When asked what would be discussed during his meeting with Shaat, Cem said, ''Turkey already makes her contributions to ease the pain and sorrowful situation which Palestine and Israel are experiencing. We will discuss these issues.''

    When recalled that Alvaro De Soto, the U.N. Special Envoy to Cyprus, would visit Turkey on Friday, Cem said he would meet with De Soto, adding that, ''our attitude is clear. I will talk to him within the framework of the statement made by Prime Minister Ecevit.''

    Responding to a question if Prime Minister Ecevit would attend the EU meeting that will take place in Nice, Cem said no decision has been given yet in this respect.


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