Cable No. 994 from Ambassador Sengoku Takashi (Turkey) to the Minister of Foreign Affairs, 'The Prime Minister’s Visit to Turkey (Meeting with Prime Minister Akbulut)'

Secret

Telegraphic Copy                                                        [blacked out]

The Prime Minister’s Visit to Turkey (Meeting with Prime Minister Akbulut)

No. 994                       Secret  Top Urgent      [blacked out]

Outgoing Telegram 990 Separate Telegram 2

1. At the outset of the meeting, Prime Minister Akbulut said the following:

(1)  Iraq’s invasion and annexation of Kuwait are a violation of international law. Turkey condemns these acts and demands Iraq’s withdrawal from Kuwait. In regard to the Security Council resolutions, Turkey is completely implementing them. Turkey has also promptly and completely been implementing the economic sanctions. We believe that only in complete implementation of the economic sanctions will a peaceful resolution of the issue be possible.

(2) Turkey’s economy is suffering terrible losses due to the situation in the Gulf. Turkey, a neighboring country of Iraq, has close relations with Iraq in all fields. Turkey is suffering a huge economic blow from the shut off of the oil pipeline, the suspension of overland transport, and the withdrawal of construction joint ventures (15 to 20 companies from Turkey had gone into Iraq).

(3) There are countries (Saudi Arabia, Iran, the Soviet Union, and Libya among them) that have benefited from the rise in oil prices accompanying this situation. On the other hand, Turkey has been terribly affected by the rise in oil prices. Iraq recently proposed, on condition of receiving food from Turkey, supplying Iraqi oil free of charge until 1991, but Turkey rejected it. This proposal was attractive for Turkey. Perhaps it would have been possible to provide the food under humanitarian pretenses, but Turkey refused.

(4) Various countries have talked of supporting Turkey, but we expect such talk to move towards prompt implementation. If oil prices do not return to where they were, then Turkey will suffer a huge blow.

(5) In regard to economic cooperation, I would like to ask for cooperation for the following items in particular:

(a) a project for the renovation of the Golden Horn Bridge

(b) a project for the development of the Istanbul waterworks (Istanbul’s population is rapidly increasing and the issue of its waterworks in a serious one. Our government is considering various measures, but a huge amount of funding is necessary, and we would like your cooperation.)

(c) a project for the installation of equipment for flue gas desulfurization in the Kemerkoy power station

(d) a project for rural district drinking water supply

(e) commodity loans (a total of 2 billion dollars – with 500 million dollars in fiscal year 1990 and 75 million dollars each in fiscal years 1991 and 1992 – has already been requested of the Overseas Economic Cooperation Fund)

(6) In regard to the investment protection agreement, we have received the report that we are at the stage where we can initial it today. I thank you in particular for that.

2. The Prime Minister replied in saying the following:

(1) In regard to the situation in the Gulf, Japan’s position is to reject the annexation of another country by military force and that Iraq’s invasion and annexation of Kuwait is unacceptable. In addition, Japan’s position is that we observe the United Nations resolutions and that international efforts for the peaceful and just resolution of the issue are needed. I highly appreciate Turkey’s resolute attitude in regard to this issue. I understand the economic blow that Turkey is suffering. Japan imports 220,000 barrels of oil a day from Iraq and Kuwait, equivalent to 12 percent of total import volume. We have suspended all of that. Also, when the price of oil rises by 10 dollars a barrel, the result is an increased expense of 19 billion dollars a year. For the sake of international peace, we must bear this.

(2) We have decided on cooperation of up to 2 billion dollars for the multinational force and support of 2 billion dollars for the front-line countries. Furthermore, we will provide as an emergency measure 600 million dollars to Egypt, Turkey, and Jordan. We will provide this support within the framework of our nation’s constitution and by non-military means. Also, in regard to the refugee issue, on the basis of appeals from international organizations (the United Nations Disaster Relief Organization, the International Committee of the Red Cross, the International Organization for Migration), we have already provided so far a total of 22 million dollars in emergency aid for refugee relief and repatriation. In addition to participating in such international efforts, and on the basis of discussions with countries concerned, including this visit to Turkey, Japan would like to continue working for a peaceful and just resolution of the current situation.

(3) In regard to the establishment of 500 million dollars in trade insurance, it is as I mentioned earlier (see Separate Telegram 1).

(4) The coming of negotiations on the investment protection agreement to the final stages is a welcome development. The conclusion of this agreement is significant for the expansion of economic exchanges between our two countries, so I would like to further work with you, Prime Minister, on it.

(5) In regard to the project for the development of the Istanbul waterworks, I would like to have the administrative authorities consider it after receiving detailed materials on the project.

(6) In regard to the project for the installation of equipment for flue gas desulfurization in the Kemerkoy power station, Japan is actively promoting economic cooperation in the environmental field. I would like to have the administrative authorities, under Japan’s basic policy concerning this project, consider possible forms of cooperation on it.

(7) In regard to the project for the supply of drinking water to rural districts, I would like to have the administrative authorities further consider it.

3. Prime Minister Akbulut said that, with President Ozal visiting Japan in November for the enthronement ceremony, he wished to request the authorization of direct flights between Istanbul and Tokyo. In reply, the Prime Minister said the following:

(1) I am grateful that President Ozal will attend the enthronement ceremony and look forward to seeing him there. It is a welcome development that Turkish Airlines started flying last year to Narita.

(2)  In regard to direct flights, we are considering it. As there is the issue of flying by way of Siberia and China, however, I will convey your request to the appropriate minister.

4. Prime Minister Akbulut said that a treaty for the suspension of double taxation was also under negotiation and that further cooperation between our two countries was needed. In reply, the Prime Minister said that he would instruct the administrative authorities to continue negotiations on the treaty and ensure that it leads to a positive outcome.

5. Furthermore, the two leaders confirmed that negotiations on an investment protection agreement had reached the final stages and hoped for an early conclusion. Ambassador Sengoku and Turkish Ambassador to Japan Arik then signed a document to that effect.

6. Finally, Prime Minister Akbulut said that he wished to toast the signing of the document and, with that, he ended the meeting.    (End)