Breaux, Grassley, McCain Introduce Trade Bill for Turkey
Senators introduced the Turkish-Israeli Economic Enhancement Act
The Turkish Times - Democratic Sen. John Breaux and Republican Sens. Chuck Grassley and John McCain have introduced bipartisan legislation to enhance economic growth and opportunity for the Republic of Turkey. "Turkey is essential for regional stability in the Middle East, and has contributed to the war efforts in Afghanistan"

Breaux said. "It's time to allow Turkey to participate in the Qualified Industrial Zone program so the nation may bolster its economy by trading duty-free with the United States."

Grassley said, "Turkey is a key ally of the United States. Its unwavering support for our joint efforts to fight terrorism is a testament to our strong friendship. We need to continue working together to foster greater stability in the region. Enabling Turkey to participate in the Qualified Industrial Zone program can help attract foreign investment to Turkey and build greater regional stability. The program will also enhance trade between Turkey and Israel, adding an economic dimension to their already strong and unique security relationship."

McCain said, 'Turkey's deepening, and unique, strategic relationship with Israel, command of the International Security Assistance Force in Afghanistan, partnership in NATO, and support for U.S. policy toward Iraq place it in the first order of American allies. Turkish troops have fought alongside U.S. forces from Korea to Kabul. As a Muslim nation and a secular democracy, Turkey puts to rest the myth that America's war on terror is a war on Islam. Turkey deserves our support, and I hope Congress will act swiftly on our legislation to advance Israeli-Turkish cooperation and American interests in the region."

The senators introduced the Turkish-Israeli Economic Enhancement Act, which would allow qualified products from Turkey to be eligible for duty-free entry into the United States under the Qualified Industrial Zone program. Congress established the Qualified Industrial Zone program in 1996 to facilitate economic cooperation between Israel, Egypt and Jordan. The program has helped to foster greater economic cooperation among these three nations. Allowing Turkey to participate in the program will foster even greater economic growth and stability in the region.

The new Breaux-Grassley-McCain bill would amend Section 9(e)(1) of the United States- Israel Free Trade Area Implementation Act of 1985, as amended, (the FTA Act) by expanding the definition of "qualifying industrial zones" to include portions of the territory of Israel and Turkey. Under the FTA Act, the President may proclaim duty-free benefits for certain products produced within the qualifying industrial zones. The Turkish-Israeli Economic Enhancement Act would allow the President to proclaim duty-free benefits for certain products -- excluding certain import-sensitive products -- of qualifying industrial zones established jointly by Israel and Turkey. Turkish-Israeli Economic Enhancement Act would foster cooperation between Israel and Turkey and help promote economic growth, opportunity and development in Turkey, a vital security partner in NATO and a key ally in the war against terrorism.

Ministers: "Turkey meeting IMF-backed budget targets"
Orhan Coskun, ANKARA, June 19 (Reuters) - Turkey is meeting key budgetary targets under its $16-billion IMF pact, even though some spending limits have been exceeded, Turkey's two leading economic ministers said on Wednesday.

Finance Minister Sumer Oral told Reuters Turkey was easily surpassing its targets for the primary budget surplus, which excludes interest payments on its massive debt load, and that a key IMF-backed year-end target would be met. "I think we are going to make our targets for the budget's primary surplus and the budget deficit," he said. Turkey has promised the International Monetary Fund it will run a tight budget this year and raise the primary surplus in order to service a debt load swollen by last year's financial crisis.

Economy Minister Kemal Dervis told reporters later in the day that a good budgetary performance was compensating for some shortfalls in the accounts of state economic enterprises.

"Developments in public sector balances are completely within the framework of the (IMF) programme," he added.

The government is targeting a primary surplus of 15,900 trillion lira ($10.3 billion) this year, and it said earlier this month the primary surplus in the first five months of the year was 8,967 trillion lira.

Oral said he expected debt yields and the rate of the Turkish lira against the dollar to return to levels they traded at prior to recent political uncertainty sparked by the illness of Prime Minister Bulent Ecevit.

"I believe the levels of foreign currency and interest rates will return to normal with an improvement in the sensitive conditions that have recently been created," he said.

Ecevit, 77, is recovering at home after two extended hospital stays in May to treat several ailments including blood clots and a broken rib.

His illness sparked worries the three-party government may be forced to call early polls amid a standoff over EU reforms.

Oral said plans to introduce an inflation targeting regime is the centrepiece of Turkey's monetary policy could be presented to parliament later in the month or in October, after it reconvenes from a summer recess.

Rep. Crane Announces "Free Trade Zone" Legislation for Turkey
The Turkish Times - Congressman Phil Crane, Chairman of the Ways and Means Trade Subcommittee, announced that he has introduced legislation to create Qualifying Industrial Zones (QIZs) between Turkey and Israel under the U.S.-Israel Free Trade Agreement. The bill helps Israel and Turkey strengthen the economic dimension of an already strong, unique military/security relationship. Enhancing commercial ties between Israel and Turkey boosts inter-regional trade, promotes stability, and helps to further the U.S. goal of finding a lasting peace in the region.

"Turkey has been a staunch ally of both the United States and Israel. We must do all we can to assist this important democracy's economic development through expanded free trade," Crane stated "The benefits of creating economic development and stability in a nation through the QIZ program are clear. Jordan has 11 QIZs, created since 1999, which have elevated exports from $31 million to $250 million," Crane continued. "I'm certain that this legislation will have a significant impact on Turkey's growing hi-tech sector, and I look forward to working with my colleagues to pass this important bipartisan legislation quickly."

The bipartisan bill is cosponsored by Congressmen Robert Wexler (D-FL), Dick Armey (R-TX), Tom Lantos (D-CA), and Pete Sessions (R-TX).

Turkey Agrees to Purchase Raytheon Stinger Weapon Systems Launchers
TUCSON, Ariz., June 20 - Raytheon Company has signed a direct commercial sale agreement with the Turkish Undersecretariat for Defence Industries (SSM), paving the way for the sale of Stinger launcher systems to Turkey.

Once Congress approves the sale, which is valued at approximately $34 million, Raytheon will provide more than 150 Standard Vehicle Mounted Launchers (SVML), more than 170 Air-to-Air Stinger launchers, as well as spare parts and logistics support.

"This pending sale opens the door for future business with SSM, including the potential sale of Stinger launchers for the Turkish attack helicopter program," said Paul Walker, vice president, Land Combat Product Line, Raytheon Missile Systems, Tucson, Ariz. "This sale is especially important as it marks the first direct commercial sale awarded by SSM to Raytheon's Missile Systems business unit."

Raytheon will provide the SVML units for integration into the Turkish Pedestal Mounted Stinger Systems (TPMSS), known in Turkey as ZIPKIN and ATILGAN. ASELSAN Elec-tronic Industry Inc. of Turkey initiated the program to locally manufacture the TMPSS for the low-level air defense requirements of the Turkish Armed Forces. The ATILGAN and ZIPKIN fire units will use Turkey's existing Stinger missiles for very short-range air defense. Stinger, combined with these fully automated firing units, will provide coordinated operation with command and control systems, operation during day/night and adverse weather conditions, improved reaction time, higher hit probability, as well as high fire power and high mobility.

Turkish Navy Awards
$ 750,000 Radar Contract to Primagraphics
AMHERST, Mass. June 27, 2002 - Primagraphics (www.primagraphics.net), the command & control, video and graphics specialist, has won a contract for nearly US $750,000 from the Turkish Navy to supply COTS-based radar and TV video distribution and display subsystems, and radar tracking equipment, for a frigate modernization programme.

A senior spokesman for the Turkish Navy said of the contract: "Primagraphics was selected for this important project because its commercial-off-the-shelf (COTS) equipment cost effectively met our needs, and Primagraphics was able to comply with our support and technology transfer requirements."

Mark Saunders, regional sales manager for Primagraphics, said, "We are delighted to be awarded this strategic contract and we are looking forward to working closely with the Turkish Navy on this important modernization programme.

"This is yet another sizeable export order which demonstrates again our growing stature in the global command and control market place," added Saunders.

Primagraphics is a recognized leader in the development of processing and display systems for military and civil applications. Its systems, available in VME, PCI and PMC formats, are in use throughout the world for airborne and shipborne command and control consoles, vessel tracking, air traffic control and air defense systems.

Its expertise encompasses radar scan conversion and tracking solutions, as well as compression, decompression and distribution of data (radar and TV video) across wide and local area networks.