ATAA to Pres. Bush:"There Was No Genocide"
The Turkish Times-In a letter sent to U.S. President George W. Bush, ATAA President Dr. Orhan Kaymak-calan asked the President to consider incorporating the Turkish point view into his anticipated April 24 message. Every year on April 24th the Armenian-American lobby demands a public acknowledgement of the so-called "Armenian genocide" by the White House. The U.S. presidents in the past have obliged without, however, using the term "genocide."

"Our concerns go beyond the use of the word "genocide", which you rightly avoided in last year's message, but extend to a correct interpretation of the whole history of this period that is factually correct and recognizes the suffering of all civilian ethnic/religious groups, including Ottoman Muslims," Kaymakcalan told Bush.
(Full text of the ATAA letter)

Turkey Condemns Continuing Attack on Israelis
The Turkish Times-Turkish Ministry of Foreign Affairs has issued a statement on April 12 condemning the recent attacks in Haifa and Jerusalem by Palestinian suicide bombers, targeting Israeli civilians. The "We strongly condemn the terrorist attack on April 10, near Haifa, and the one today in Jerusalem, both of which have caused the deaths of many innocent persons and the wounding of still numerous others," The official Turkish statement said.

"We convey our condolences to the Israeli people and Government. The fact that the terrorist attack in Jerusalem took place at a time when the United States Secretary of State was in the region within the context of the international community's peace efforts is a clear indication that these attacks serve the purposes of the opponents of peace."

"Turkey once again states its views that these suicide attacks which do not serve the Palestinian cause must immediately be stopped, that a cease-fire should be achieved, that Israel should withdraw from the territories occupied and that the parties should rapidly return to the negotiation table," the Turkish Foreign Ministry said.

Ecevit Retracts "Genocide" Accusation Against Israel
ATAA: "We Don't Agree." Jewish groups protest Ecevit
The Turkish Times-Turkish Prime Minister Bulent Ecevit's recent "genocide" accusation against Israel has ruffled the feathers between the two allies -- and the only two democracies in the region. Various Jewish groups have let Ankara know their disappointment with Ecevit's unfortunate characterization of the Israeli military response to Palestinian suicide bombs.

The Turkish PM's statement on Thursday April 4th that "genocide is being committed" against the Palestinians by Israel were his sharpest criticism to date of Israel, which enjoys close military relations with Muslim Turkey.

"It is not just Arafat, the whole of the Palestinian state is being destroyed step by step. A genocide against the Palestinian people is being carried out before the eyes of the world," Ecevit told party members in Turkish Parliament.

Following Ecevit's statement, Turkish military and diplomatic circles assured Israel that Turkey has no plan to change its friendly policy vis-a-vis Israel. However, the next day American Jewish Committee has sent a frank letter to the Turkish Prime Minister, expressing the dismay Ecevit's word has caused within the American-Jewish community.

"On behalf of the 115,000 members and supporters of the American Jewish Committee, and as longtime friends of Turkey, we write to express our profound disappointment," said AJC President Harold Tanner and Executive Director David A. Harris.

"There would have been a Palestinian state had Yasser Arafat had the sense and courage to come to an agreement with Israel as was offered in July 2000 at Camp David - or at the very least engage in serious negotiations. Instead, he turned to violence. He has initiated, tolerated and supported a wave of brutal terror with but a single purpose - to kill as many innocent Israeli civilians as possible, with the intent of achieving through murder what he had sworn to seek through a political process. No civilized nation could permit this. Your nation certainly did not do so when faced with the violence perpetrated by the PKK for many years," AJC leaders reminded.

ATAA's reaction
In a message issued to American-Jewish organizations, ATAA President Dr. Orhan Kaymakcalan said: "I want to assure you that as the Assembly of Turkish American Associations, we do not agree with the Turkish Prime Minister Bulent Ecevit's use of the term "genocide" with reference to the ongoing Israeli military action. We are glad to see a prompt clarification by the Prime Minister, stating that his remarks were misinterpreted. Our community is committed, as ever, to peace for all Israelis and Palestinians, and to the strategic partnership between Turkey and Israel."

"Unintended interpretations"
Israel has launched simultaneous diplomatic initiatives in Ankara and Tel Aviv to protest Ecevit's remarks linking Israel's use of force to the genocide term.

Israel has asked Ankara for an "explanation" of the comments, warning that Ecevit's announcement could affect relations between the countries.

After Turkish Foreign Minister Ismail Cem also warned that ties may be affected by the "genocide" comment, Ecevit said his words were "misunderstood." They merely reflect his "concerns over the events in the Middle East," he added. "We attach great importance to our relations with Israel," Ecevit told reporters on Friday, Apr 5. "The fact that I have indicated our grievances ... in very clear terms may have led certain groups to be offended."

Ecevit also issued a separate written statement that said his use of the word "genocide" had led to interpretations he did not intend. "My words reflect the concerns felt in the region and in our country about recent events," he said.

Private Turkish news channel NTV claimed that Ecevit softened his tone after the U.S. Jewish lobby denounced his speech. The Jewish groups have long been supporters of Turkey in Washington.

The speech sparked speculation that the U.S.-backed Israeli-Turkish friendship - a rarity in the region - was buckling under pressure from the Turkish public, which has harshly condemned Israeli sieges in the West Bank.

Turkish-Israeli Military Ties
Despite Ecevit's remarks, Turkish-Israeli military relations are enjoying a healthy growth curve.

Turkey and Israel cooperate in a range of security areas and Turkey only last month signed a $668 million deal for an Israeli state defense firm to upgrade 170 aging Turkish M-60 tanks. At mid-week, Ecevit and the Turkish defense minister said that canceling the vital $670 million deal is not an option.

Meanwhile, Israel has declared that it will not participate in the upcoming three-way Anatolian Eagle joint military exercises with the United States in Turkey due to technical problems.

Turkey and Israel are still working to jointly produce Popeye II air-to-ground missiles as they prepare to start the Arrow II program with the approval of the US, in a further move to build a joint missile defense shield.

Israel is currently upgrading Turkey's 54 F-4 and 48 F-5 jets under a nearly $1 billion deal.

US and Turkish Officials Meet to Discuss Iraq
Turkish Daily News-U.S. Deputy Assistant Secretary for Near East Affairs Ryan Crocker, who recently visited cities in northern Iraq, met with the Director General of the Middle East Department of the Turkish Foreign Ministry, Ambassador Turkekul Kurttekin. The two officials discussed Crocker's trip to Iraq and evaluated the recent developments in the Middle East. The U.S. told reporters that that they were planning to gather the Iraqi opposition groups for a conference over the future of Iraq in order to determine the demands of the Iraqi population. Crocker told reporters that he met with the officials from the Kurdistan Democratic Party (KDP), the Patriotic Union of Kurdistan (PUK) and the Assyrian and Turkmen parties.

Screwball Economics, Voodoo Financing:
Subsidies, a Thing of the Past?
Analysis by Ercument Kilic, ATAA President-Elect,Chairman, Turkish Times Committee(Part 1 of 2)-It was 5:00 o'clock in Ankara in February of this year. I was making my may to Esenboga Airport. Driving trough Dikmen and Asagi Ayranci, relatively well-to-do segments of Ankara, I witnessed something which became the subject matter of this article; the bread lines.

Apparently, all over Turkey now, such scenes are a part of daily life and this disheartening scene on my part has been a major topic of discussion in the media for an extensive period of time. There doesn't pass a day in Turkey that a news item related to bread lines is not printed; Some sad, some curious; from articles on the newly emerging, more affordable, "stale bread" ("bayat ekmek") market, to articles stating: "consumption of bread, despite consumer subsidies fell from a daily 12M to 8M in Istanbul" respectively.

Further self induced study, and self provoked thought brought out two results: One, I was sad to see Turkey swallowed so far deep into this black hole called subsidies, currently with no hope of a propelling action to spin itself out of this endless cycle, and two, to see that this monster of subsides being a global disease especially in underdeveloped and the so-called developing countries.

Along those lines, there is good news and bad news on the matter of subsidies and the bread lines in Turkey.

Good news #1: TURKEY IS NOT ALONE: Turkey is not the only country where such subsidy methods are employed, Turkey is not the first country where lines of sorts are a part of daily scene. As a matter of fact, the reason the lines of people in the US for instance are invisible is because the supporting bureaucratic system and the related work force are "efficient" enough to do the job through means other than actual lines of people on the streets.

Established in 1862 by President Abraham Lincoln for instance, such a work force in this country, the Department of Agriculture (USDA) has become one of the largest agencies in the Federal government with more than 120,000 employees. For every four full time farmers in the US there is one USDA bureaucrat on the payroll.

Good news #2 THERE MAY BE GOOD SUBSIDIES: An analyses of subsidy policies for industrial and developing countries in four sectors: energy, road transport, water and agriculture may show that not all subsidies are "bad" and indeed, that there may be "good" subsidies. In fact, what makes the subsidy issue so complicated is that the difference between beneficial and harmful subsidies may well lie in the details.

A BRIEF WORKSHOP ON THE CONCEPT OF SUBSIDIES before going into "The Bad":
A definition of a subsidy is that it is a payment of money or another form of an aid that the government gives to a person, organization or businesses. Its purpose is to encourage some needed activity by furnishing funds, free land, tax relief, or legal rights that might otherwise be lacking. And the subsidies come in two shapes and forms: Consumer subsidies and production subsidies.

When governments grant production subsidies, what is in mind is to provide a leveled playing ground for domestic businesses who may need to compete with foreign competitors, or to encourage private sector contribution to national economy. In the 1800s for instance, the United States government gave large tracts of land to the railroads on the condition that they would build lines across the continent. Altogether, the railroads received about 160,000,000 acres (64,700,000 hectares) of land in this way. The government also granted subsidies to telegraph and cable companies. In the 1920s, it granted subsidies to ship companies. It gave them generous mail-carrying contracts and allowed them to buy government-owned ships at a fraction of their actual cost. Government airmail contracts have also aided the airlines since the 1920s. Taxes on goods imported into the United States are also indirect subsidies to US manufacturers who produce the same kind of goods. Governments can also impose a guaranteed minimum price that raises the actual price above market level. In this case, government policy also subsidizes production.

A consumer subsidy on the other hand -which results in such things as bread lines-, is directly lowering market price of a commodity to help the poor for instance and it can be more sensitive when examining its final effects on an economy such as that of Turkey.

Residents of Ankara in bread line early in the morning. February 2002. Photo by Ercument Kilic

AND... THE BAD AND SAD NEWS FOR TURKEY:
Bad news #1 In the case of the first type of subsidy -production subsidies-, producers have an incentive to expand supply, sometimes unnecessarily. A production subsidy may encourage producers to accelerate resource depletion and leads to higher production, ant it may also potentially create surpluses which can be sometimes most visibly damaging to an economy. In a country such as Turkey, when rampant corruption has had its termite-like effect on the whole economy, the idea of some government subsidies going to some producers who not only may not increase the production, but may even be producing "imaginary products", can be enought to make the idea of a subsidy raise the hairs on the back of one's neck.

Bad news #2 Concerning the second case, a consumer subsidy: economic theory teaches us that in efficient markets, private welfare is maximized when prices equal marginal private costs. Any deviation from this optimal level will lead to inefficiencies. As this type of subsidy is sometimes improperly awarded in Turkey to gain the political support of those receiving the aid, such decisions can end up hurting some other segments of the public economically by creating excessive domestic demand. If the consumption is not constrained, a decrease foreign exchange revenues and a drain on the government budget the economy are also experienced.

Bad news #3 These two types of subsidy policy interventions may even exist simultaeously and create a non-transparent web of various distortions and a huge fiscal drain. Both producer and consumer subsidies, either through overproduction or overconsumption, may also cause the environment to degrade or cause other external effects.

Bad news #4 Regardless of the cause and the effects of subsidies, in order for subsidies to be afforded or endured by an economy, one or more of the following must happen:

1. The economy is simply strong enough to disregard the laws of supply and demand and endure the bleeding: Is the Turkish economy that?

2. The loss of revenues from the subsidized product must be overcome by cross-subsidies (as in telephone industry, charging residential customers low rates while making up for the losses by charging the businesses more): As anything else, let's say that this is somewhat doable in Turkey, but is it a smart policy to artificially and unfairly shift this additional burden from one segment of society to another? If any type of an investment -may it be by the government or by the private industry- is impeded by an unnecessary burden such as this on businesses, and this impediment disregards the principles of "trickle down economics" ( businesses with more resources, invest = they contribute to the reduction of unemployment = employed people with money have more purchasing power = with their purchases they cause the economy to grow even larger), which idea gained popularity and proved to be a successful policy in this country since the Reagan years, why shoot yourself in the foot and kill the bird that can lay golden eggs? The same bird, the private industry in Turkey, whose extraordinary strive single-handedly is responsible for any economical accomplishments of Turkey in the last two decades!

3. Levying additional taxes across the board to recover the losses: How realistic is that for Turkey?

Bad news #5 Subsidies are often not the right policies: they give the wrong signals and may even be counterproductive. Subsidies tend to waste resources, they do not produce the intended results and they wind up in the pockets of the wrong people. Each year, hundreds of millions of dollars are wasted on subsidies, harming the economy, the environment, equity and trade; these squandered public resources can be used in a much more effective way.

Bad news#6 Once the consumer subsidies are in place, it is very difficult to wean people from them, especially if political considerations were the underlying initial consideration, and reducing them is certain to cause wide protest just as the ones in Egypt in early 80s when the bread subsidies were discontinued and the public reaction was so hard that they were reinstated immadiately in fear of nationwide major unrest to even destabilize the regime. (Part 2)

Council of Europe Condemns PKK
RASMUSSEN: "EU Terror List Should Correspond to the U.S. List"
Associated Press-Turkish News-Denmark's Prime Minister Anders Fogh Rasmussen, who paid a two-day visit to Turkey, agreed on Friday April 5 that the outlawed organization Kurdis-tan's Worker's Party (PKK) should be on the EU 's list of terrorist organizations. "The Danish attitude is that the EU list of terrorist organizations should correspond to the list of the United States," Fogh Rasmussen said in a joint news conference with Turkish Prime Minister Bulent Ecevit. "The PKK is, and should be considered as, a terrorist organization and should be included in the [EU terrorist organizations] list," he said. Turkey has assailed the EU for not including PKK, and DHKP-C, a militant leftist group, on its list of terrorist organizations. The United States brands both groups as terrorists. The EU recently released a list of groups whose assets would be frozen and said the list would be reviewed in the future. Denmark takes over the rotating presidency of the EU in July 2002.

"Return to Villages" project
In the meantime, Parliamentary Assembly of the Council of Europe released a report, which expressed satisfaction with the progress of the Turkish government's "Return to Villages" project. Additionally, it described the PKK as a "terrorist organization" and laid the blame for migration out of the region on the PKK's campaign of terrorism and violence. The council report also condemned the PKK's specific terrorist activities.