From: TEX5HAD@CMS1.LEEDS.AC.UK (Haluk DEMIRBAG)
Newsgroups: soc.culture.turkish
Subject: Excerpts From The Foreign Press
Date: 20 Aug 92 00:37:08 GMT
Reply-To: Turkish Cultural Program List <TRKNWS-L%USCVM.BITNET@forsythe.Stanford.EDU>

TURKEY FACES FORMIDABLE ECONOMIC TASKS
(FINANCIAL TIMES, 3 August 1992)

In the  OECD report published  today it is stated  that generally
speaking Turkey's economic policy is  on the right path. However,
the  gigantic task  of continuing  growth and  lowering inflation
faces the country.

In this first  report of the OECD since  the coalition government
headed  by  Prime Minister  Suleyman  Demirel  came to  power  in
November, a  call was issued  for closer cooperation  between the
Government and the Central Bank in relation to radical reforms in
industry, the budget deficit and limiting public sector salaries.

Though the  OECD stated  that the general  lines of  the economic
programme of  the new  government show  progress, the  problem of
continued  growth, salary  increases  for workers  and the  fight
against inflation are big problems that face the country.

An increase of  5% is planned for the gross  national product for
1992, and  it is expected that  current accounts in the  next two
years will  show a  surplus of  0.5% of GNP.  A tight  budget and
financial policy  will be  instrumental in lowering  inflation to
below 70% in 1993.

A  large portion  of this  will  be through  lower public  sector
borrowing which  showed a record  increase in 1991 with  12.5% of
GNP. This year it is expected to be 8.8% of GNP.

The  OECD cautioned  that  if reducing  public  borrowing is  not
successful high  inflation will result and  Turkey's foreign debt
repayments  will increase  with  the decrease  in the  purchasing
power of the Turkish Lira.

CETIN CALMS SYRIA
(SUDDEUTSCHE ZEITUNG, 3 August 1992)

Syria and Turkey  will cooperate in security  and water problems.
In a statement after completing a two-day visit to Syria, Turkish
Foreign  Minister  Cetin  said   that  they  were  successful  in
overcoming  prejudices  and  misunderstandings. Cetin  said  that
Syria had promised to abide  by the security protocol signed last
spring and he had assured  Syrian officials that Turkey would not
use water as a political tool against her neighbour.

The focus of the conflict between  the two countries is the giant
Southeastren Anatolia Project (GAP) which includes 22 dams and 19
hydroelectric power  plants to be  built on the  rivers Euphrates
and Tigris over an area as big as Belgium.

On 25 July at the inauguration ceremony of Atataturk Dam which is
the most important  unit of GAP, Prime  Minister Suleyman Demirel
repeated that  Turkey had  the right to  manage the  waters which
flowed within her borders.

In  a statement  concerning the  water problem,  Foreign Minister
Hikmet Cetin emphasized  that Turkey in accordance  with the 1987
agreement was committed to supplying  Syria with 500 cubic metres
of water  per second. Syria  was concerned that Turkey  would use
the  waters of  the Euphrates  which meets  one-third of  Syria's
drinking  water requirements  only for  herself. Iraq  also fears
that Turkey will use water resources for political pressure.

NEWSPOT, August 1992
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