PULSE of TURKEY No: 36-46 .................................................... AUGUST 1998

PULSE of TURKEY No:36 YILMAZ GOVERNMENT MINUS YILMAZ UNTIL ELECTIONS?
Parliament votes for elections and takes two months recess. Attempts to bring clarity to the Yýlmaz-Baykal agreement for elections bring more confusion to Baykal himself. The key issue, the nature of the 56th Government, is to be determined at the political chess board and the Kasparov of the Turkish political chess game, Ecevit, made successful moves last week. Forthcoming elections must strengthen the hands of secular politicians and President Demirel is expected to use his influence and power for it. That means the continuation of the tripartite coalition after Yýlmaz’s resignation. The only possible alternative is a wide range “election government”, but it takes two to tango. Baykal’s plans may be doomed at the outset.

PULSE of TURKEY No:37 DEMÝREL GIVES DIPLOMATIC SUPPORT TO ARAFAT
But long-term military cooperation goes on with Israel as from 1991, with Turkish assurances that it is against no one. Middle East peace process stalled. Turkey and Israel are unanimous that terrorism should not be used as an instrument in the peace process or international relations. Çiller’s busybodying messes up a favourable cooperation for intelligence sharing, but the future may be promising.

PULSE of TURKEY No:38 TURKISH-ISRAELI RELATIONS DIVERSIFIED – AT SURPRISING SPEED AND VOLUME
Mutual business volume is heading for $2 billion with a balance in favour of Israel, but promising arrangements are in the pipeline. The mutual trade volume, mostly in Turkey’s favour, is expected to reach $2 billion in 2000 and business volume much higher. Israel intends to liquidate certain industries in favour of high-tech industries which may give a boost to stagnating Israeli business in Turkey though religious prejudices are a hindrance. Third countries may be a more fruitful cooperation. Military cooperation surpasses expectations, but remain at technical level and do not move on to strategic alliance.

PULSE of TURKEY No:39 THE EURASIAN FREE TRADE AREA
The nucleus of the economic organisation in the offing is BSEC which completes foundation process, but backbone is Turkish-Russian cooperation. Phenomenal advancement in bilateral relations between Ankara and Moscow is given low profile. Turkey’s bilateral free trade arrangements mushroom and free trade zones flourish within the country. The Eurasian Free Trade Area will find elaborate infrastructure when it’s ready to appear legally in the international sphere.

PULSE of TURKEY No:40 FREE TRADE ZONES DURING THE CUSTOMS UNION PROCESS
Turkey’s free trade zones do not infringe EU rules and its memberships to various international economic cooperation organizations do not obstruct Customs Union arrangements with the EU.

PULSE of TURKEY No:41 ALARMING SIGNS IN THE ECONOMY: ARE THEY REAL OR FICTIVE?
The fight against inflation is not a failure, but it is no stunning success either. Stock exchanges going through a shock wave. Interest rates are rising, but economic fundamentals are not yet in jeopardy. Bureaucrats stick out their necks to prevent populism before elections. An excellent harvest turns out to be a stumbling block for the success of the monetary program.

PULSE of TURKEY No:42 SOUTHEASTERN QUESTION ON THE AGENDA
Prominent Turkish diplomat suggests strong action against Syria for support of PKK. He says Syria is,
de facto and de jure, at war with Turkey by sheltering and supporting terrorism. International conditions are suitable for Turkey to retaliate. Europe may give political status to this terrorist organization. Ambassador Elekdað expects the PKK to be an international political question before long and suggests social, economic and political measures to solve the problem. The State Department agrees without losing sight of historic facts that are not necessarily in its favour.

PULSE of TURKEY No:43 ANKARA DRAWS LESSONS FROM ASIAN AND RUSSIAN CRISES
Turkey carefully studies Asian and Russian economic crises to avoid such occurrences at home. Finance Minister says hot money is a scourge; it is not possible to make reforms without profound measures and preparations. Treasury Chief says the only way out is current economic parcel for Turkey. Timely preparations in Ankara about the Russian crisis may have a reverse effect and boost the mutual cooperation of the two neighbours facing similar problems of different intensities. Turkey’s free market experience is an advantage in this respect.

PULSE of TURKEY No:44 TURKISH-AMERICAN ACTION PLAN HEADING FOR A CRUCIAL TEST
Five-point Action Plan agreed upon by Clinton and Yýlmaz last December will be put to the test over the Caspian energy lines. Is the exodus of $2 billion from IMKB in two weeks a coincidence or part of Soros’s tricks in Russia and Turkey today, after the Asian Tigers and Japan last year and the one in the pipeline for China? The key in these tricks is the capitalist world’s little known new principle: “Raise him to the point of incompetence” (then drop him without a parachute when the time comes). It is the new version of the 19th-20th century imperialism’s tactic: “Give him enough rope to hang himself” (as Saddam did). Turkey is familiar with these tactics and seeks sound remedies in cooperation with the United States and the other victims, if possible. Washington is well aware of Turkey’s value and most probably will find a way to satisfy Ankara.

PULSE of TURKEY No:45 WATER, A NEW CAUSE FOR WAR?
Turkey aims to use water for peace. Greek Cypriots can quench their thirst with Turkish water. After the TRNC, “anybody” (meaning in fact Israel) can get water from Turkey following lengthy bargaining behind the scenes. The supply of Manavgat water to the Middle East starts any day. Syria has to go beyond lip service to solve its terrorist sheltering problem before expecting any cooperation with Turkey on the water question.

PULSE of TURKEY No:46 THE OPPOSITION’S DILEMMA IN THE ELECTION CAMPAIGN
The two big opposition parties, FP and DYP, have only one theme in the election campaign ahead - fight for democracy. How feasible is this theme? What are the pros and cons? What are the chances of success? Are there constitutional safeguards against such success and what are they? Attempts to form a “Democracy Front” and the following developments clearly indicate what can be expected at the elections and thereafter. President Demirel brings further clarity to the situation.

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