Boston Hosts "Business Opportunities in Turkey" Panel TACCIM organized the meeting The Turkish Times-Ambassador Faruk Logoglu had led a round table discussion on "Business Opportunities in Turkey" with prominent U.S. businessmen and businesswomen, and representatives of private and governmental organizations in the New England area on March 14 at Boston's Downtown Club. The meeting was organized by The Turkish American Chamber of Commerce, Industry and Maritime Trade (TACCIM), in partnership with U.S. Department of Commerce, U.S. Export Assistance Center, The Massachusetts Export Center, and Global Business Alliance of New England. Ambassador Logoglu, in his remarks, stated that his objective is to help fostering economic and commercial ties between the U.S. and Turkey. At the meeting, Ambassador Logoglu emphasized the importance of trade and investment in the bilateral relations between the United States and Turkey, especially focusing on the progress in the establishment of Qualifying Industrial Zones (QIZs) in Turkey from which Turkey would be able to export a significant range of products duty-free to the U.S. During the Turkish Prime Minister Bülent Ecevit's visit to Washington in January, President Bush and Prime Minister Ecevit had made a decision to elevate U.S.-Turkish economic relations to the same level as the strategic partnership that is shared on political and security matters. The meeting of the U.S. - Turkey Economic Partnership Commission on February 26 - 27, 2002 marked the first step in implementing this decision. Best prospect sectors for investment in Turkey have been identified, including sectors such as information technology and software development, defense and aerospace, environmental technologies, and building products. The Turkish American Chamber of Commerce, Industry and Maritime Trade (TACCIM) is a non-profit organization founded in September 2000. Founder and President of TACCIM, Mr. Erkut Gömülü, told that as the U.S. - Turkish relations move from strategic partnership towards economic partnership, the aim of TACCIM is to promote increasing the level of economic relationship between the two countries. Mr. Gömülü believes that increasing economic ties between two countries will bring the U.S. - Turkish bilateral relations to a new phase as well, and eventually mutual interests in both countries will also be defended by the groups which will emerge as a result of these stronger economic ties. TACCIM, as a nationwide organization, aims to promote opportunities to increase business, trade and investment between business communities of the United States and Turkey. As a part of its mission, TACCIM targets to develop cooperation between the U.S. and Turkish small and medium size enterprises, and it is one of the organizers of "Turkish Trade Mission" in Seattle, Washington, which will take place on May 12 - 17, 2002. During this period, Washington State businessmen and businesswomen will have the opportunity to meet for in-depth discussions with the Turkish delegates.

Turkey, Greece sign $300 mln natural gas pipeline deal
Asli Kandemir ANKARA, March 28 (Reuters) - Turkey and Greece signed a memorandum of understanding on Thursday to build a $300 million natural gas pipeline to carry Caspian Sea gas to Europe via the two countries.

The planned 285 km pipeline will stretch from Karacabey in the western Turkish city of Bursa to Komotini in Greece, Turkish Energy minister Zeki Cakan said at a signing ceremony with Greek Development Minister Akis Tsochatzopoulos.

"This is the first concrete step between Greece and Turkey in energy cooperation," Cakan said.

The pipeline will confirm Turkey's importance as a transition country helping to carry natural gas from the energy-rich Caspian region to European markets, Cakan said.

The agreement to build the first ever pipeline between the two traditionally hostile neighbours came after three years of negotiations between Turkish state pipeline concern Botas and its Greek counterpart Depa. "This cooperation is a step taken to promote peace and stability in our region," Tsochatzopoulos said.

The pipeline, whose feasibility works have been completed, is due to pump 500 million cubic metres of natural gas to Greece from 2005, Cakan said.

Of the total pipeline, 200 kms will be laid in Turkey and the rest will be in Greek territory. Each country will be responsible for building the pipeline on its own land.

The part of the pipeline on Greeek soil will be financed by European Union loans, Tsochatzopoulos said. "We will ask for the EU to help financing of the pipeline on the Turkish part."

Turkey estimates it will buy about 25 billion cubic metres of gas from Russsia, Algeria, Nigeria and Iran and expects to consume 20 billion cubic metres this year.

In future Turkey wants to sell its excess natural gas to European markets via Greece.

In the same meeting, Turkish and Greek electricity transmission companies also signed a deal to build a 400 kilovolt transmission line between the two countries. The line is planned to be finished by the end of 2006, a joint statement said.

Georgia deal clears way for Caspian gas line
TBILISI, March 14 (Reuters) - Partners in the giant Azeri offshore Shakh Deniz gas field on Thursday cleared the way for construction of an export pipeline to Turkey by signing an agreement with transit nation Georgia.

The group led by BP signed a Host Government Agreement with Georgia at a ceremony in the capital Tbilisi, the last governmental agreement necessary for the launch of the first phase of the project in July this year.

"This is yet another remarkable milestone which paves the way for the development of the world class Shakh Deniz gas field... and the construction of a new gas pipeline from Baku," David Woodward, President of BP in Azerbaijan said after the ceremony, witnessed by Georgian President Eduard Shevardnadze.

The $2.6 billion first phase envisages the construction of a production platform at the Caspian field and a pipeline through Georgia to link up with a new Turkish-built line.

Last year, Azerbaijan signed an agreement to supply energy-hungry Turkey with two billion cubic metres (bcm) of gas from 2004-2005, rising to 6.6 bcm by around 2007.

The pipeline will also feed the Georgian market, lessening Georgia's dependence on Russian gas supplies, which are intermittently cut off. Woodward said Shakh Deniz had a full production potential of 16 bcm a year.

Israel to import Turkish water, double desalination capacity
Michal Raveh Globes (Israel) 20 March 2002- The economic cabinet passed two historic decisions on the water crisis today: 50-100 million cubic meters of water will be immediately imported from Turkey, and the quantity of desalinated sea water will be doubled to 400 million cubic meters a year.

The cabinet debate was prompted by the grave water shortage, exacerbated by the fact that this winter's rainfall did not fill the water reservoirs. Water Commissioner Shimon Tal and top officials from water company Mekorot attended the debate, and presented worrisome figures concerning the water shortage and the harsh implications of over-pumping water from reservoirs.

The directors general of the Prime Ministers Office, the Ministry of Foreign Affairs, the Ministry of National Infrastructures and the Accountant General were requested to present the cabinet with a plan for the shortest possible timetable for importing water from Turkey. The plan is to be presented within 14 days. The tender for importing water from Turkey was disqualified a few months ago, because the bidders did not meet the terms.

The Ministry of National Infrastructures and the Accountant General were asked to sign as soon as possible the contract with the concessionaire for expanding the Ashkelon water desalination facility to 100 million cubic meters a year.

The cabinet also ordered the tenders committee, led by Accountant General Nir Gilad, to choose the winners in the tenders for small water desalination facilities of up to 65 million cubic meter a year by the end of June, so that they start operating by the end of 2004.

The cabinet also decided to promote the construction of additional water desalination plants of up to 100 million cubic meters a year in the Hadera region, and choose a concessionaire for such a facility by October, so that it can start operating by the end of 2004.

The Ministry of National Infrastructures director general and the Accountant General will present the cabinet with a work plan in 30 days, so that yet another quantity of desalinated water is produced by February 2005.

PM Ecevit says IMF reforms cut state power too much
Osman Senkul ISTANBUL, March 27 (Reuters) - Turkish Prime Minister Bulent Ecevit said on Wednesday some IMF-backed reforms may have cut state power too much, sparking concern among officials and bankers tracking a $16 billion IMF loan pact of political wavering.

A financial crisis broke in February 2001 devastating Turkey's economy, costing thousands of jobs, halving the value of the lira currency, swelling the country's domestic debt load and sparking the worst recession since 1945.

The country now has a $16 billion IMF rescue package that could bring Turkey's total IMF borrowing to $31 billion in three years time, making it the fund's biggest client.

The IMF has demanded in return that the state give up control of many areas of the economy to stop corruption, eliminate bureaucratic waste and free up the economy.

"I must confess that in terms of increasing autonomy we have gone too far," Ecevit told a conference in Istanbul, adding that legal steps were being prepared to address the problem.

Turkish markets held steady after the comments but many observers were surprised and said they could hint at troubles to come with the international lender.

Economy Minister Kemal Dervis, a former World Banker brought in by Ecevit at the height of the crisis, has been a consistent advocate of cutting state influence in the economy, a central plank of the IMF reform deal.

Independent regulators now run telecoms and banking. The central bank is independent. An aggressive privatization programme is planned and huge state banks have been given more autonomy to restructure. Ecevit said that process of more independence had gone too far. He did not specify which bodies he was talking about but hinted that in the case of the state banks, the government might claw back some of its influence.

"Many public bodies are now completely outside state and government influence and inspection and have become institutions free to do what they want," said the prime minister, a leftist with a strong nationalist streak.

"I believe we have to look at the issue of autonomy again and make it balanced and healthy."

He hinted that major job losses planned at state banks might be a step too far and had roused public anger.

"Whether in banking or in other sensitive areas the state is being excluded completely. We might be able to put up with this but the public will not. That's why I think we need to set up a more healthy balance between autonomy and the process of politics," he said.

POLITICAL DISCOMFORT
One banker who requested anonymity told Reuters he thought Ecevit could well have been talking about state banks and also, possibly, the independent Banking Supervisory Board (BDDK), a regulator set up on IMF urgings. "

It has been seen for some time that among politicians there is discomfort with these two bodies," the banker said.

His comment was echoed by an economy bureaucrat.

"If he was talking about the BDDK then things are worse. Because it means the government is repudiating everything the BDDK has done to date," he said.

The bank watchdog has closed numerous banks since crisis hit Turkey's financial system and has tightened the pressure on existing banks to improve their standards.

Such steps lie at the heart of IMF efforts to stabilise Turkey's financial system, which collapsed in crisis last year.

"Today's statement shows the prime minister and the government do not understand the things they have put their names to," said one economist who asked not to be named.

Brokerage house Is Yatirim said the remarks looked likely to alarm the IMF.

"The news demonstrates that politicians have not learned their lesson about making brash potentially market destabilising remarks...and that perhaps those in control do not want the economy to decouple sufficiently from politics, a situation that will not please the IMF," it said in a note after the speech.

GROWTH A PRIORITY
The IMF programme foresees gross national product (GNP) growth of three percent this year after a 2001 recession expected at around 8.5 percent of GNP. "Growth is the right of the Turkish nation. The Turkish nation brims over with energy and that's why I cannot stomach contraction. I believe we must accelerate growth without giving an opportunity to inflationist tendencies," Ecevit said.

But an IMF inspection team which visited this month said signs of economic growth were hard to find despite improvements in other key areas such as falling interest rates and inflation.

"Growth is needed and enterprise must be encouraged to prevent problems and revitalise the economy. Some people worry that rapid growth could also speed inflation. I do not share these worries," Ecevit told a conference in Istanbul, Turkey's commercial and banking centre. (Additional reporting by Servet Yildirim in Istanbul)

Motor racing -- Build a track and F1 may come to Turkey
ISTANBUL, March 28 (Reuters) - Formula One chief Bernie Ecclestone told Turkish motor sport officials on Thursday that if they built a track he would try to add them to the calendar.

"Turkey has a lot of potential," Ecclestone was quoted as saying by state-run Anatolian news agency.

Speaking after a meeting with Turkish Automobile and Motorsports Federation president Mumtaz Tahincioglu in Istanbul, Ecclestone said there was no reason why Istanbul should not host a grand prix.

"There are a lot of advantages. I don't see any disadvantages. First you just have to come up with a track.

"After that we can fix the calendar," he said.

There is currently no grand prix in the Middle East but Turkey is up against Dubai and Egypt as possible venues.

ECONOMIC CRISIS
Turkey, a country of 65 million people that straddles the continents of Europe and Asia, is currently working to overcome an economic crisis and would dearly like the tourism boost that would come with a grand prix.

Istanbul failed last year in its third bid to host the summer Olympic Games, but has said it will keep trying.

The Turkish Motorsports Federation took out a full-page advert in the January edition of 'F1 Magazine' to publicise its campaign to bring a race to Istanbul.

There is much discussion within the sport over adding new races to the calendar, with some people advocating taking a race each off Italy and Germany, which currently host two races each.

Eleven of the 17 races are in Europe, South America has just one, while Africa and the Middle East are not represented.