Cable No. 998 from Ambassador Sengoku Takashi (Turkey) to the Minister of Foreign Affairs, 'Prime Minister Kaifu’s Visit to the Middle East (Meeting With Prime Minister Akbulut, Press Briefing)'

Telegraphic Copy                                            [blacked out]   08-059

Prime Minister Kaifu’s Visit to the Middle East (Meeting With Prime Minister Akbulut, Press Briefing)

No. 998                       Top Urgent      [blacked out]

The meeting took place on the morning of October 5, from 10 o’clock to 11:30.

Following is an outline of the briefing on the meeting with Prime Minister Akbulut that was given to reporters by Middle Eastern and African Affairs Bureau Director General Watanabe.

1. Briefing Outline

(1) There was a small group meeting for the first 30 minutes. Present from the other side were Minister of State Gunes Taner; State Planning Agency Director Ali Tigrel; Finance and Trade Agency Director Kurche [literal transliteration]; and others. Following that there was held a general meeting (joining those already present were several working level officials).

In the small group meeting, the main issue was that of bilateral relations and private investment. In the general meeting, there was discussion of the effect of the situation in the Gulf and Japan’s cooperation in response to it.

(2) Bilateral Relations

(After both sides agreed in recognizing that the wide-ranging progress in bilateral relations in such fields as politics, the economy, and culture was welcome)

The Prime Minister expressed his appreciation for the warm reception that His Imperial Highness Prince Mikasa received on his visit to Turkey.

Prime Minister Akbulut said:

I would like to develop in particular not only government relations, but those in the private sector as well. Investment from Japan in Turkey at present stands at only 4% of the foreign investment that Turkey has received and 0.1% of Japan’s foreign investment, so I would like to work together to increase this further.

Turkey is interested in agriculture, electronics, and automobiles. In regard to automobiles, Toyota plans to advance soon into Turkey. Large-scale investment has started, and I would like from this point forward to advance further.

In regard to the investment protection agreement and a treaty prohibiting double taxation, the former is in its final stages and I would like to conclude it as soon as possible. I would like to advance negotiations on the latter as well.

The Prime Minister said in response:

We already have such results as Isuzu Motors, Kagome Ketchup, and Bridgestone Tire investing in Turkey. I would like to see Turkey make further efforts to improve the environment for investment. A decision has now been made to set aside 500 million dollars as untied trade insurance for Turkey.

I would like the money to be used to promote Turkish exports and for other financial needs in the private sector. It is my sense, too, that negotiations for an investment protection agreement have come to the final stages. I would like to make further efforts for an agreement at the level of prime minister on the conclusion of a long-term agreement.

Prime Minister Akbulut said in reply, “Thank you for setting aside 500 million dollars for trade insurance.”

(3) Situation in the Gulf

Prime Minister Akbulut said in regard to Turkey’s fundamental position on the situation in the Gulf; (i) Iraq’s invasion and annexation of Kuwait are completely unconscionable and are a violation of international law. (ii) From this fundamental position, Turkey condemns the invasion and demands Iraq’s withdrawal as soon as possible. (iii) The United Nations has unanimously adopted resolutions. In regard to economic sanctions in particular, Turkey itself not only is completely implementing them but is calling on other countries to completely implement them. (iv) Only in the complete implementation of sanctions will a peaceful resolution be possible.

Turkey, due to its special position neighboring Iraq, is suffering losses different from those of countries that do not neighbor Iraq. Turkey has lost all trade with Iraq. The oil pipeline between Turkey and Iraq has been shut down. The border is closed. Overland trade has been lost. Some 15 to 20 Turkish companies had gone into joint ventures in Iraq, but they have withdrawn. There has also been damage due to rising oil prices. Turkey, given its location, is in a position of being able to break the sanctions but has not done so. I have heard various words on helping us with the losses that we are suffering from the sanctions but, to borrow the words of our President, the situation is one in which the clouds are visible but no rain has fallen. Therefore, we look forward to the implementation of this support.

I would like to request, within the framework of our cooperative economic relations to date, the following:

(1) a renovation plan for the Golden Horn Bridge

(2) an expansion plan for the Istanbul waterworks

(3) desulfurization equipment for the Kemerkoy power station

(4) a drinking water plan for the Anatolia rural district

The Prime Minister said in response:

After having explained Japan’s position to date on the situation in the Gulf, I express my respect for Turkey responding with a resolute attitude to the present situation. I well understand the losses that Turkey is suffering. As for oil, Japan is also suffering losses from the rise in oil prices and the suspension of oil supplies from Iraq and Kuwait, but we must overcome this. As part of our contribution of 4 billion dollars, Japan will provide 200 million dollars in emergency commodity loans to Turkey. Regarding the renovation plan for the Golden Horn Bridge, we would like to send an inspection mission and cooperate on it.

Together, the two sums provided come to 300 million dollars. In regard to issues in the future, we will examine additions of suitable sums in keeping an eye on the situation under international cooperation. Regarding projects within the framework of our relations of economic cooperation to date, I would like to have them examined at the administrative level. Particularly in regard to the desulfurization of power plants, Japan is now actively promoting economic cooperation in the environmental field.

Next, Prime Minister Akbulut said, “There are flights between Istanbul and Narita, but I would like to make them direct flights.” The Prime Minister said in reply, “We, too, would like to have flights between Istanbul and Narita, but there are some technical issues regarding direct flights, so I will convey what you said to the appropriate minister.”

(At the end, Ambassador Sengoku and the Turkish Ambassador to Japan together signed a memorandum on the investment protection agreement.)

2. Questions and Answers

(Question) How much will you provide give for the Golden Horn Bridge?

(Bureau Director General) The amount will be determined as a result of the survey. As I said earlier, at this stage it is estimated at approximately 100 million dollars.

(Question) By Golden Horn Bridge do you mean the Bosporus Bridge?

(Bureau Director General) That is a different one. The Golden Horn Bridge was built in 1974 with a yen loan. The Bosporus Bridge spans the strait of Istanbul.

(Question) Is this part of the 1.4 billion dollars previously mentioned? 

(Bureau Director General) Yes, it is.   

(End)