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U.S. Department of State  
Turkey Country Commercial Guide  
Office of the Coordinator for Business Affairs  
 

                              TURKEY

                               FY96
                     COUNTRY COMMERCIAL GUIDE



TABLE OF CONTENTS


I.  EXECUTIVE SUMMARY  

II.  ECONOMIC TRENDS AND OUTLOOK
  - Major Trends and Outlook
  - Principal Growth Sectors
  - Government Role in the Economy
  - Balance of Payments Situation
  - Infrastructure Situation

III.  POLITICAL ENVIRONMENT
  - Nature of Relationship with the United States
  - Major Political Issues Affecting Business Climate
  - Brief Synopsis of Political System, Schedule for
    Elections and Orientation of Major Political Parties

IV.  MARKETING U.S. PRODUCTS AND SERVICES
  - Distribution and Sales Channels
  - Use of Agents/Distributors
  - Franchising
  - Direct Marketing
  - Joint Ventures/Licensing
  - Steps to Establishing an Office
  - Selling Factors/Techniques
  - Advertising and Trade Promotion
  - Pricing Product
  - Sales Service/Customer Support
  - Selling to the Government
  - Protecting Your Product from IPR Infringement
  - Need for a Local Attorney

V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
  - Best Prospects for Non-agricultural Goods
      Telecommunications Equipment
      Electric Power Generation Equipment
      Textile Manufacturing Equipment
      Medical Products
      Building Products
      Computer Software
      Auto Parts/Services
      Airport, Ground Support Equipment
      Electronics Production/Test Equipment
      Architecture, Construction, Engineering
      Pollution Control Equipment
      Food Processing & Packaging Machinery
      Security Services/Equipment
      Defense Industry

  - Best Prospects for Agricultural Goods
  - Significant Investment Opportunities

VI.  TRADE REGULATIONS AND STANDARDS
  - Tariffs and Import Taxes
  - Customs Valuation
  - Import Licenses
  - Export Controls
  - Import/Export Documentation
  - Temporary Entry
  - Labeling, Marking Requirements
  - Prohibited Imports
  - Standards
  - Free Trade Zones/Warehouses
  - Special Import Provisions
  - Membership in Free Trade Arrangements

VII.  INVESTMENT CLIMATE
  - Openness to Foreign Investment
  - Conversion and Transfer Policies
  - Expropriation and Compensation
  - Dispute Settlement
  - Political Violence
  - Performance Requirements
  - Right to Private Ownership and Establishment
  - Protection of Property Rights
  - Regulatory System
  - Bilateral Investment Agreements
  - OPIC and Other Investment Insurance Programs
  - Labor
  - Foreign Trade Zones/Free Ports
  - Capital Outflow Policy
  - Major Foreign Investors

VIII.  TRADE AND PROJECT FINANCING
  - Description of Banking System
  - Foreign Exchange Controls Affecting Trading
  - General Financing Availability
  - How to Finance Exports/Methods of Payment
  - Types of Available Export Financing and Insurance
  - Project Financing 
  - Lists of Banks

IX.  BUSINESS TRAVEL
  - Business Customs
  - Travel Advisory and Visas
  - Holidays
  - Business Infrastructure

X.  APPENDICES

APPENDIX A  COUNTRY DATA
APPENDIX B  DOMESTIC ECONOMY
APPENDIX C  TRADE
APPENDIX D  INVESTMENT STATISTICS
APPENDIX E  U.S. AND COUNTRY CONTACTS
APPENDIX F  MARKET RESEARCH
APPENDIX G  TRADE EVENT SCHEDULE



This Country Commercial Guide (CCG) presents a comprehensive look at 
Turkey's commercial environment through economic, political and market 
analyses.

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annually at U.S. Embassies 
through the combined efforts of several U.S. Government agencies.


CHAPTER I.  EXECUTIVE SUMMARY

OVERVIEW
The Turkish market offers excellent growth prospects for American 
exports.  Increased spending on infrastructure projects and private 
sector investment will generate strong demand for a wide range of 
capital goods.  Turkey's young population of 60 million is rapidly 
growing, both in numbers and in purchasing power.  Recent export growth 
underscores the agility of Turkish entrepreneurs and the geographic 
advantage Turkey enjoys for sales into the European Union, Russia, 
Central Asia, and Middle Eastern markets.  Turkey's outstanding growth 
prospects led to its designation by the U.S. Department of Commerce as 
one of the world's ten Big Emerging Markets.  

Turkey remains unexplored territory for most American companies outside 
the Fortune 500 and defense suppliers.  We hope this guide will provide 
enough information to encourage your firm to increase its Turkish 
marketing efforts.  

SOME INTERNATIONAL COMPARISONS
U.S. trade statistics indicate that the value of U.S. exports to Turkey 
in 1994 was $2.75 billion.  This exceeded total American sales to such 
markets as Russia ($2.6 billion), Sweden ($2.5 billion), India ($2.3 
billion), and all of Eastern Europe ($2.2 billion).  The value of total 
Turkish import demand is on par with markets like Brazil and Indonesia 
and is significantly higher than Argentina, Poland and South Africa.

EXPORT OPPORTUNITY SECTORS
Implementation of infrastructure projects will require billions of 
dollars worth of power generation, telecommunications, pollution 
control, medical, airport, and architecture/engineering equipment and 
services.  Turkish private sector growth is generating demand for 
textile manufacturing, food processing and packaging, and capital goods 
to boost manufacturing efficiency and product quality.  

POSITIVE EFFECTS OF EU CUSTOMS UNION AGREEMENT
Turkey is slated to enter into a customs union agreement with the 
European Union on January 1, 1996.  (The European Parliament is 
scheduled to vote on this later this year.)  Successful conclusion of 
this agreement will spur private investment as the outline of Turkey's 
economic future becomes clearer and local firms gear up to meet the 
increased competition in the domestic market and take advantage of the 
new export opportunities.  Turkey will phase out non-tariff import fees 
(e.g., the Mass Housing Fund contribution) and reduce its import duties 
to the level of the EU common external tariff (once the Uruguay Round 
tariff reductions are phased in, Turkish duties on U.S. goods will 
average only about 2 percent).  This will translate into a major 
reduction in the cost of imported products for local consumers.

EMBASSY BEM STRATEGY FOR TURKEY
In the coming months, the U.S. Embassy in Turkey will focus its export 
promotional efforts on:

(a)  concluding several build-operate-transfer power generation 
projects, which will generate hundreds of millions of dollars worth of 
U.S. exports of equipment and services;

(b)  privatization opportunities in the telecommunications sector, 
including operating license competitions in cellular, paging, data 
transmission, public phones, directory services, and cable television; 

(c)  identifying environmental infrastructure project opportunities with 
viable sources of implementation finance;  and

(d)  supporting U.S. interests involved in developing a southern 
pipeline route to transport Caspian Basin oil, a project valued at an 
estimated three billion dollars.      

REGIONAL MARKET SPRINGBOARD
Turkey retains its historic role as land bridge between Europe and Asia.  
Moreover, trade with Russia has mushroomed in recent years with Turkish 
annual exports to Russia estimated at $1-3 billion.  Turkey has also 
pursued market opportunities in the newly independent states of Central 
Asia and the Caucasus.  Turkish construction firms are very active in 
these markets as well as more traditional ones in the Middle East and 
North Africa.  U.S. firms can work with Turkish firms for product 
distribution into regional markets and joint-ventures to compete for 
regional project opportunities with Turkish firms supplying construction 
services. 

MARKET PENETRATION STRATEGY SUGGESTIONS
After reading this and other market data available in the United States, 
we suggest you visit Turkey for face-to-face meetings with potential 
clients and representatives.  Istanbul is the country's commercial 
center, followed by Izmir and Adana, with the capital Ankara a necessary 
stop for those pursuing government-sponsored infrastructure projects.  
The U.S. Foreign Commercial Service offers its Gold Key program to 
arranged custom-tailored appointment programs with appropriate Turkish 
firms.  Other Commerce Department programs that may meet your marketing 
needs are the Agent/Distributor Service and the Customized Market 
Analysis programs.  (Contact your nearest U.S. Department of Commerce 
Export Assistance Center or Commercial Service Office for more details 
of these and other services of potential assistance for American 
exporters.)

BOTTOM LINE
The Turkish market offers strong growth prospects for American 
exporters.  Its demographics, massive infrastructure requirements, 
dynamic private sector, regional export opportunities and expected 
intensification of liberal economic policies validate its designation as 
one of the world's ten "Big Emerging Markets."  Is your company 
positioned to profitably participate in this growth market?

Country Commercial Guides are available on the National Trade Data Bank 
on CD-ROM or through the Internet.  Please contact Stat-USA at 1-800-
Stat-USA for more information.  To locate Country Commercial Guides via 
the Internet, please use the following Worldwide Web address:  WWW.STAT-
USA.GOV.  CCGs can also be ordered in hard copy or on diskette from the 
National Technical Information Service (NTIS) at 1-800-553-NTIS.


CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK

MAJOR TRENDS AND OUTLOOK

From establishment of the republic until the early 1980s, Turkey was an 
insulated, state-directed economy. In the 1980s, however, the country 
began an economic turnaround based on increased reliance on market 
forces, export-led development, lower taxes, integration with the world 
economy, and privatization.  These reforms brought Turkey impressive 
benefits:  average annual growth rates over the past decade were the 
highest of any OECD country.  

Turkey's leadership, however, left the reform program unfinished.  
Turkey's perennial economic problems -- large public sector deficits and 
resulting high inflation -- continued to worsen even as the economy 
recorded impressive gains.  Because of these imbalances and Turkey's 
ballooning current account deficit, Moody's downgraded Turkey's credit 
rating from BAA3 to BA1 in January 1994.  This sparked a run on the 
Turkish Lira and sent the economy into a tailspin.  The introduction of 
a much-needed austerity and stabilization program in April 1994 further 
cooled down the economy.  The "April 5 Program" formed the basis of an 
stand-by agreement between Turkey and the International Monetary Fund 
which was approved in July.

Turkey weathered the 1994 crisis, although at a great cost to the 
economy.  GNP fell 6 percent, setting a post-war record.  Unemployment 
jumped and real wages fell.  Both the private and public sectors put 
investments on hold.  Although inflation slowed following implementation 
of the program, it rebounded later in the year and set a new record.  On 
the positive side, the currency depreciation boosted exports and 
produced a healthy current account surplus.  Turkey had no problem 
meeting its substantial foreign debt payments last year, although at the 
cost of a spiraling domestic debt burden.

The Turkish Government has had only partial success implementing the 
program's structural reform measures.  Steps such as privatization of 
money-losing state enterprises, improved efficiency of tax collection, 
and streamlining of the social security system are essential to remove 
pressure on the state budget and promote stable and sustainable growth.  
Late last year Prime Minister Ciller won approval of a new privatization 
law.  Implementation, however, has been slow.

Turkey's economy is showing signs of recovery in 1995.  Driven by a 
dynamic private sector and the prospect of a customs union with the 
European Union (EU) next year, Turkey's long-term potential is bright. 
The fundamentals that made Turkey the fastest-growing country in the 
OECD during the 1980s have not changed and have even improved in many 
respects.

Economic Growth.  Turkey's GNP has grown at an average annual rate of 
4.5 percent  since 1981, although there have been large swings around 
this mean.  Growth reached 8.1 percent in 1993, due in large part to a 
high rate of consumption resulting from lax monetary and fiscal 
policies.  1994's economic crisis and austerity program brought to an 
end 13 straight years of growth.  The 6 percent decline recorded in GNP 
last year set a post-war record for Turkey.  GNP in 1994 totaled $133 
billion.  With recovery underway, most analysts expect positive GNP 
growth this year.  The Turkish Government's official target is 3.1 
percent growth.

Agriculture accounted for 16 percent of GNP in 1994, and its output was 
essentially unchanged from 1993.  Industry, responsible for 26 percent 
of GNP, was down 5.7 percent for the year.  Manufacturing sector output 
fell by 8 percent, mining output rose by 8 percent, and energy output 
was up 3 percent.  Services accounted for 45 percent of GNP and were 
down 4 percent in 1994.

Consumption and Investment.  Private final consumption, which accounted 
for 69 percent of gross domestic product (GDP) in 1994, fell 5 percent 
in real terms over the previous year.  Consumption of durable goods 
dropped 29 percent.  Government final consumption, accounting for 8 
percent of GDP, fell by 4 percent last year.

Gross fixed capital formation, accounting for 27 percent of GDP, fell by 
16 percent last year.  Of this, private sector investment, which 
accounted for nearly four-fifths of the total, was down 9 percent.  
Public sector investment fell by 35 percent.

Although no data are yet available on consumption and investment in 
1995, both are likely to post some improvement as the economy recovers 
from 1994's recession.

Inflation, Wages, and Monetary Policy.  In spite of efforts undertaken 
under the April 1994 reform program, Turkey's principal economic problem 
remains inflation, fueled primarily by large public sector deficits.  
Annual consumer price inflation has averaged 74 percent since prices 
began to escalate in 1988; wholesale price inflation has averaged 70 
percent.  

Inflation in 1994 soared to record levels, due mainly to huge one-time 
increases in state-administered prices as part of the April reform 
program.  Although monthly price increases during the summer months 
indicated that the government's anti-inflationary policies were having 
some impact, inflation accelerated in the fall.  For the year as a whole 
consumer prices rose 126 percent, versus a 71 percent rise recorded in 
1993; wholesale prices rose 149 percent, following 1993's 60 percent 
rise.  Part of the blame for the resurgence of inflation lies in cost 
pressures, particularly in the agricultural sector.  More important, 
however, were high inflationary expectations on the part of producers 
and investors, stemming from the government's inability to follow 
through with the structural reform measures promised in the April 5 
program.

As the sharp price increases recorded last April and May have dropped 
out of the calculations, annual inflation rates have dropped 
significantly.  Consumer prices in the twelve months through May 1995 
were up 82 percent; wholesale prices in the same period by 78 percent.  
The government promises that this return to "normal" levels of inflation 
is not sufficient.  Its target for annual inflation in December is 
around 40 percent, although most observers find this overly optimistic.

Throughout most of the 1980s wages failed to keep pace with inflation, 
resulting in real declines in workers' income.  Beginning in 1989, 
however, real wages began to increase substantially, rising some 30 
percent in 1993 alone.  These increases -- which were not backed up by 
productivity improvements -- contributed to the economic imbalance which 
triggered 1994's economic crisis.  Real wages dropped substantially in 
1994, as pay increases for civil servants were well below inflation.  
Wages in the manufacturing sector fell by 52 percent in U.S. dollar 
terms between September 1993 and September 1994, reaching $1.12 per 
hour. 

The Central Bank's ability to design and implement a coherent monetary 
policy has been severely constrained by its role in financing the 
government's perennial budget deficits through money creation.  Until 
1994, the Bank tried to "smooth out" changes in domestic interest rates 
and the foreign exchange rate of the Turkish Lira.  With the onset of 
the economic crisis in January 1994, the Bank shifted to a policy of 
trying to control the devaluation of the Lira using overnight interest 
rates as a tool.  Under the terms of the IMF agreement, the government 
agreed to limit recourse to the Central Bank for financing the deficit.  
The government has also taken steps toward increasing the independence 
of the Central Bank.

PRINCIPAL GROWTH SECTORS  

Energy.  Electrical energy demand in Turkey is growing by approximately 
eight percent a year.  By the year 2000 electrical energy demand is 
projected to reach 130 billion kWh, more than double consumption in 
1993.  Even if all the current hydroelectric potential (120 billion kWh) 
can be used, total output will be far from sufficient to meet 
anticipated requirements by the year 2000.

Telecommunications.  In 1993 Turkey had a telephone exchange main line 
capacity of approximately 12.7 million and telephone subscriber density 
of 21 lines per 100 persons.  By the year 2002, Turkey aims to increase 
its subscriber line capacity to 20 million, and increase the telephone 
line density to 25 per 100 persons.  They also expect the system will be 
80 percent digital by that point.

Environment.  With the establishment of a Ministry of Environment in 
1991, environmental issues have won increased prominence.  New 
regulations regarding sewage, medical waste and power plant emissions, 
among others, will add to the growth of this sector.

Transport.  The Turkish Government gives a special priority to the major 
infrastructure projects especially in the transport sector.  Although 
most state investments were put on hold in 1994, the government earlier 
this year announced the resumption of planning  for many airport, port 
and highways projects.

Textiles.  The textile sector is Turkey's largest manufacturing 
industry, and its largest export sector.  Sales in its most important 
market, Western Europe, have been limited by quotas.  These restrictions 
are to be removed under the customs union scheduled to come into effect 
next year.  The global phase-out of textile quotas called for in the 
Uruguay Round also increases this sector's potential.  Significant 
expansion and modernization projects are already underway.

Other principal growth sectors are tourism, automobiles and electronics.

GOVERNMENT ROLE IN THE ECONOMY

A serious imbalance between government revenues and spending is the root 
cause of Turkey's inflation problem.  Addressing this imbalance was the 
fundamental aim of the April 5 program.  Total public sector borrowing 
requirements (PSBR) reached nearly 12 percent of GNP in 1993.  New taxes 
and sharp cuts in state expenditures combined to bring this figure down 
to nearly 8 percent in 1994.  The government's target for 1995 is 5.6 
percent.

To bring about a sustainable drop in the PSBR, the Turkish Government 
needs to implement the structural reform measures called for in the 
April 5 program and the IMF agreement.  These measures are likewise 
essential to the government's stated aim of making Turkey's economy more 
efficient and better able to compete in the EU customs union.  These 
reform steps include:

-- Privatization or closure of Turkey's inefficient state economic 
enterprises (SEEs).  Although the burden of the SEEs declined slightly 
last year -- the borrowing requirement for SEEs was 2.2 percent of GNP 
in 1994, versus 2.5 percent the previous year -- there was little 
progress on privatization.  After months of debate, the government 
succeeded in winning Parliament's approval of a new privatization law 
last November.  Amid charges of political maneuvering and mismanagement, 
revenues from sales concluded under the new law total less than $100 
million, well below projections.  Turkey's Privatization Administration 
recently revised its $5 billion revenue target for 1995 to $2.7 billion.  
Since Turkey first began selling state firms in the early 1980's, 
revenues total only around $2.4 billion.

-- Improvement of tax administration.  Tax evasion is rampant in Turkey.  
The government admits that around one-quarter of total taxes are 
uncollected; this figure is probably conservative.  Turkey's tax 
revenues equal about 22 percent of GNP, well below the OECD average of 
39 percent.  Overhaul of the tax system is a top priority of the 
government.  The World Bank is preparing a multi-year project to assist 
with the effort.

-- Reform of social security and subsidy programs.  Turkey's three 
separate social security systems, with their low retirement ages and 
inefficient operations, are a substantial drain on the Treasury.  The 
government is preparing legislation to merge the systems, raise the 
retirement age, and modernize operations.  However the subject remains 
controversial.  The government is in the process of reforming its 
subsidy and incentive programs.  Incentives for investment and export 
have been revamped in line with OECD and EU guidelines.  In the IMF 
agreement the government promised to limit its costly agriculture 
subsidy programs.  High world prices last year helped keep payments 
down.  However, Turkey's powerful agriculture lobby will make it 
difficult for the government to abandon these programs.

BALANCE OF PAYMENTS SITUATION

Trade.  Turkey's huge current account deficit in 1993 -- topping $6 
billion, more than six times higher than the previous year -- was one of 
the main causes of the instability which precipitated last year's 
economic crisis.  A $14 billion trade deficit was the main culprit.  
Imports exploded in 1993 due to an extremely high rate of domestic 
consumption, together with the Central Bank's "strong lira" policy that 
made imports progressively cheaper.

The sharp devaluation of the lira in 1994 reversed this situation.  The 
lira depreciated by about 18 percent in real terms last year.  This, 
combined with a drop in domestic demand, helped Turkey significantly 
narrow its trade deficit:  imports last year fell by 21 percent, exports 
rose 18 percent, and the trade deficit dropped to $5 billion.  Receipts 
from foreign tourism also increased last year by about 10 percent.  As a 
result the current account rebounded, ending the year with a $2.6 
billion surplus.

This year the government has returned to a "strong lira" policy, hoping 
that some appreciation of the lira will hold down inflation.  Imports 
are growing again:  they were up 16 percent in the first quarter of 
1995, with exports up 24 percent.  The government's policy is drawing 
the ire of exporters, who fear that their international competitiveness 
is being eroded.

In 1994, investment goods accounted for 30 percent of total imports, 
consumer goods 12 percent, and raw materials 58 percent.  The most 
important import sectors were machinery, iron & steel, electrical 
equipment, crude oil, and motor vehicles.  Turkey's largest source of 
imports was Germany, which accounted for 16 percent of total imports, 
followed by the United States ($2.4 billion in imports, accounting for 
10 percent of the total), Italy, France, and Japan.

Industrial products made up 85 percent of Turkey's exports in 1994, 
followed by agricultural products with 14 percent, and mining and 
minerals with 2 percent.  The largest single export sector is apparel, 
accounting for 25 percent of total exports, followed by iron & steel, 
with 13 percent, and other textile products, with 12 percent.  Turkey's 
main export markets were Germany, taking 22 percent, the United States, 
taking $1.5 billion in exports that accounted for 8 percent of the 
total, the United Kingdom, France, and Italy.  

Foreign Debt.  At the end of 1994, Turkey's total outstanding external 
debt amounted to $65.6 billion, down 3 percent from 1993.  Of  this 
total, about 18 percent is short-term debt, and the remainder is medium- 
and long-term debt.  Debt service payments for the medium- and long-term 
debt amounted to $8.7 billion in 1994.  In spite of last year's crisis 
and Turkey's subsequent inability to borrow on foreign markets, Turkey 
had no difficulty servicing its foreign debt in 1994.  Payments in 1995 
will exceed $10 billion.

Foreign Exchange Policy.  The Turkish Lira (TL) has been fully 
convertible since 1990.  For the most part exchange rates are determined 
by the market.  The Central Bank often intervenes to dampen short-term 
fluctuations.  From 1989 to January 1994 the government pursued a 
"strong lira" policy which generally kept the rate of depreciation of 
the lira below inflation.  In 1993 the TL appreciated about 2 percent 
against the U.S. dollar in real terms.  In response to last year's 
financial crisis the government abandoned this policy.  The TL's value 
against the dollar fell by about 18 percent in real terms last year.  
Since late last year the government has again been using a "strong lira" 
policy as a means to control inflation.  In the first five months of 
1995 the TL's value against the dollar slid only 10 percent, compared 
with an increase of about 30 percent in consumer prices.

International Economic Relations. On March 6, 1995, Turkey and the EU 
concluded an agreement to form a customs union from January 1, 1996.  
The agreement covers industrial and processed agricultural goods.  
Turkey is now in the process of harmonizing its laws and regulations 
with EU standards.  The two sides will meet in October to review 
progress toward meeting the criteria set out in the agreement.  The 
European Parliament must also approve the agreement.

When the agreement takes effect the two sides will remove all tariffs 
and barriers on trade in industrial goods between them.  Turkey will 
also adopt the EU's Common External Tariff, resulting in lower duty 
rates for third countries, like the United States.  Turkey is in the 
process of phasing out its Mass Housing Fund surcharge levied on all 
imports.

Turkey is a member of the World Trade Organization (WTO).  It signed a 
free trade agreement with the European Free Trade Association (EFTA) in 
1991; it is negotiating free trade agreements with Israel and several 
Central European countries.  In 1992 Turkey and ten other regional 
nations formed the Black Sea Economic Cooperation organization; it is 
not yet clear what effect this organization will have on trade and 
business.

Due to proximity and linguistic and ethnic ties, the Turkish Government 
and businesses  have continued to develop links to many of the Central 
Asian and Caucasian republics of the former Soviet Union.  The Turkish 
government has stated that it would like to see the establishment of 
joint ventures between Turkish and foreign firms to further tap the 
potential of the emerging Central Asian markets.

INFRASTRUCTURE SITUATION

Airports.  Major international gateway cities are Istanbul, Izmir and 
Ankara.  There are 22 public airports, including five international 
ones.  Several modernization and expansion projects are on the drawing 
board.  Turkish Airlines (THY) and several private firms operate 
extensively on domestic lines.  Major international airlines serving 
Turkey include THY, Delta, Lufthansa, Air France, Swissair and British 
Airways.

Ports.  Turkey currently has 21 international ports, which in 1992 were 
capable of handling an estimated 100 million tons of cargo and some 
400,000 containers.  Major cargo ports are Istanbul, Izmir and Mersin.  
Expansion of the port in Izmir is proposed.

Railways.  Turkey has about 8,400 kms of railway running from its most 
western point to its eastern borders.  Turkish Railways (TCDD) operates 
a medium-speed, freight railway system used primarily to transport 
minerals and bulk commodities.

Highways.  The highway transport system is predominant in both internal 
and external transport in Turkey.  Asphalt highways comprise approx. 
60,000 km of which approx. 1000 km are motorways--the rest are two-lane 
highways.  There is a major toll motorway, largely completed, between 
Ankara and Istanbul.  Other motorways are under construction.  In 
Turkey, approx. 85 percent of freight and 94 percent of passenger 
traffic is carried by road.  50 percent of motor vehicles traveling on 
Turkish highways are classified as trucks.  There are numerous private 
transport firms.

Courier Services.  Major international courier firms operating in Turkey 
include DHL, Federal Express (TNT), UPS and Air Express International.


CHAPTER III:  POLITICAL ENVIRONMENT

NATURE OF RELATIONSHIP WITH THE UNITED STATES

U.S.-Turkish relations have greatly expanded in recent years.  Turkey's 
assistance in the Gulf war helped its public recognition in the U.S.  
The U.S. and Turkey are seeking to broaden their bilateral relationship 
by exploring new areas of potential cooperation through expanded 
economic and trade cooperation and increased high-level political 
consultation.

The bilateral security relationship remains important.  U.S. military 
aid to Turkey of approximately U.S. $350 million annually is one 
concrete example of this fact.  At the same time, the U.S. is in the 
process of reducing its military presence in Europe, and Turkey is no 
exception.  Military presence has been scaled back significantly since 
the Cold War, with more than half a dozen bases in Turkey closing since 
1991.  The largest remaining group of U.S. forces in Turkey is at the 
air base in Incirlik, which is near Adana, where U.S. aircraft train for 
NATO missions and where Provide Comfort II Combined Task Force 
Headquarters is located.  The U.S. has also worked with Turkish forces 
in peacekeeping operations in Somalia and Bosnia under the auspices of 
the U.N.

The U.S.-Turkish Joint Economic Commission is an effort to expand areas 
of cooperation with Turkey beyond the traditional military spectrum.  
The first meeting of the JEC in many years was held in Ankara in 
December 1993, with a second meeting in March 1995 in Washington.  The 
meeting focused on trade investment and cooperation in other areas, such 
as environment.

MAJOR POLITICAL ISSUES AFFECTING THE BUSINESS CLIMATE

The Kurdistan Workers' Party (PKK), recognized by the U.S. as a 
terrorist organization, is a threat primarily in Southeastern Turkey, 
although the PKK has planted several bombs in the urbanized west and 
Aegean resorts to harm the Turkish tourism industry.  For the past 
eleven years, the PKK, by using terrorist attacks as one of its 
principle tools, has sought to establish an independent Kurdish state in 
Southeastern Turkey.  The PKK targets Turkish security forces, state 
facilities and infrastructure, and those who support the government's 
efforts against the PKK.  The government currently is engaged in a large 
counter-insurgency operation in Turkey's Southeast region, and has met 
with success in returning a sense of security to the region's urban 
areas. 


SYNOPSIS OF POLITICAL SYSTEM

Political System.  The Turkish political system, as defined by the 1982 
Constitution, is a secular, parliamentary democracy with executive, 
legislative, and judicial branches.  The executive branch includes a 
President, who serves as chief of state, the Prime Minister as head of 
government, and the Council of Ministers (or Cabinet).  The President, 
who has broad powers of appointment and supervision, is chosen by the 
Parliament for a term of seven years, and cannot be reelected.  
President S?leyman Demirel was elected in May 1993.  The President 
functions in a non-partisan role; whereas the Prime Minister is 
generally the chairman of the political party with the largest number of 
Parliamentary seats.  The Prime Minister administers the government; the 
Prime Minister and Council of Ministers are responsible to Parliament.  
The legislative branch of the government, consisting of 450 deputies 
elected in national elections at least every five years, is the Turkish 
Grand National Assembly (TGNA).  Elections are by proportional 
representation and there is double threshold mechanism.  To participate 
in the distribution of seats, a party must obtain at least 10 percent of 
the votes cast at the national level as well as a percentage of votes in 
the contested district.  The judicial system consists of a 
constitutional court, a series of state courts that consider terrorist 
crimes, a council of state, and a high council of judges and 
prosecutors.

Elections.  National elections, in which the Parliamentary deputies and 
prime minister are elected, are held at least every five years.  The 
last national elections were held in October 1991.  The next national 
elections must be held no later than the fall of 1996.

Local elections are held every five years.  The most recent municipal 
elections were held on March 27, 1994; the next are scheduled for spring 
1999.

OVERVIEW OF POLITICAL PARTIES

Center-Right.  The senior coalition party True Path Party (DYP) and 
opposition Motherland Party (ANAP) are both center-right parties, 
sharing similar ideologies.  The DYP, formed in 1983, was founded in the 
tradition of the defunct Justice Party of S?leyman Demirel: a 
heterogeneous, conservative mass party, tolerant of religious belief, 
and supportive of the peasantry as well as free trade.  The DYP 
traditionally has been strongest in the rural areas of central Anatolia, 
and currently holds 182 seats in Parliament.  It is led by Prime 
Minister Tansu &laqno;iller, Turkey's first female Prime Minister.  ANAP, also 
founded in 1983 by former president Turgut ?zal, holds 95 seats in 
Parliament.  Mesut Yilmaz is ANAP's Chairman.

Center-Left.  In March 1995, the Social Democratic Populist Party (SHP) 
merged with Republican People's Party (CHP).  The party's Chairman is 
Deputy Prime Minister Hikmet &laqno;etin.  The original CHP was established by 
Mustafa Kemal Atat?rk.  The party currently holds 64 seats in 
Parliament.  The Democratic Left Party (DSP), led by former Prime 
Minister B?lent Ecevit, was established in 1985.  It has 10 seats in 
Parliament.

Far Right.  The Islamist Refah (Welfare) Party, was founded in 1983 by 
Necmettin Erbakan, who continues to hold the position of Chairman.  The 
party promotes Islamic values and holds 38 seats in Parliament.  The 
Nationalist Movement Party (MHP), founded in 1983 by Alparslan T?rke_, 
promotes Turkish nationalism and has Pan-Turkish roots.

The newest mainstream party, the New Democracy Movement (YDH), started 
as an idealist movement, but was officially declared a political party 
on December 22, 1994.  Istanbul businessman Cem Boyner is its leader.  

Fifteen or more other smaller parties also exist.  



CHAPTER IV.  MARKETING U.S. PRODUCTS AND SERVICES

DISTRIBUTION AND SALES CHANNELS

Marketing of most foreign products in Turkey is through foreign 
suppliers' agents or distributors.  Depending on the location of the 
products' consumers/end-users, most distributors have a dealer network 
throughout the country or in areas where the product is most used.  
Commission agents, on the other hand, periodically visit their customers 
together with their foreign principals to maintain strong personal 
contact, a very important marketing tool in Turkey.

USE OF AGENTS/DISTRIBUTORS: FINDING A PARTNER

Unless a U.S. firm's interests are large enough to warrant opening an 
office in the country, the most effective means of selling in Turkey is 
through a reliable and qualified local representative.  Personal contact 
is extremely important in Turkish business in both private and public 
sectors.  When dealing with government tenders, an agent is an absolute 
necessity in view of complicated bureaucratic procedures and the 
language barrier.

A U.S. firm must carefully investigate the reputation and possible 
conflicting interest of any prospective agents before signing 
agreements.  Agency agreements under Turkish law are private contracts 
between two parties and their stipulations vary according to mutual 
consent.  There are no fixed commission rates.  It is strongly 
recommended that sole agents/distributors be appointed, either for the 
whole country or for specifically designated areas or types of business.  
In cases where a large volume of government business is expected, it is 
essential either to appoint an Ankara firm or an Istanbul firm with a 
branch office in the capital. 

USFCS/Turkey, through its three Turkish offices, provides a Gold Key 
service to arrange custom-tailored appointment programs for visiting 
American business visitors.  The Commerce Department's Agent/Distributor 
Service is another option for U.S. companies wishing assistance to enter 
the Turkish market.

FRANCHISING

Since 1986 when McDonald's entered Turkey as the country's very first 
franchise operation, the sector has grown and diversified significantly, 
extending into smaller towns from urban centers.  The Turkish National 
Franchising Association--Ulusal Franchising Dernegi--(UFRAD) which is a 
sister member of the International Franchising Association (IFA) acts as 
a meeting point for prospective franchisors and franchisees.  Foreign 
franchises in Turkey are concentrated in fast foods and apparel; other 
areas are increasingly represented as well.  

In terms of a legal framework, franchising is considered in the same 
category as foreign investment.  The government agency responsible for 
reviewing foreign franchise transactions is the Foreign Capital General 
Directorate of the Undersecretariat for Foreign Trade (UFT).  Foreign 
franchise proposals are generally favorably received by UFT in view of 
their potential for employment opportunities, transfer of technology and 
know-how, and the positive effects of their competition/role modeling on 
local quality standards.  

The laws that apply are the Foreign Capital Incentive Law 6224 
(promulgated in 1984) and Decree No. 86/10353 dated February 1, 1986, 
with its communique No. I.  These regulations stipulate that an 
applicant provide the UFT with:

-the draft of the master franchise agreement;
-documents confirming the existence of the physical facilities for the 
franchise operation;
-a feasibility report;
-information on the foreign entity making the application (sales volume, 
assets etc.); and
-documentation of the product or service's patent (if it is patented).

After the approval of the master franchise agreement by the 
Undersecretariat for Foreign Trade, royalty revenue can be transferred 
abroad after ten percent tax deduction.

Contacts for various aspects of franchising are:

National Franchising Association
(Ulusal Franchising Dernegi--UFRAD)
Istiklal Caddesi 65, Emgen Han
80060 Beyoglu, Istanbul, Turkey
Tel/Fax: (90-212) 252-5561
Contact: Mr. Aydin Turkmen, President

Undersecretariat for Foreign Trade
Directorate General of Foreign Investment
Eskisehir Yolu, Inonu Bulvari
Emek Mevkii, Ankara, Turkey
Tel: (90-312) 212-8800 (SW)
     (90-312) 212-8414 or 212-8915
Fax: (90-312) 212-8916

Finally, the International Franchising Association in Washington, D.C. 
(1350 New York Avenue, N.W. Washington, D.C. 20005-4709, tel. 202-628-
8000; fax: 202-628-0812), has been active in Turkey, organizing visits 
to Turkey by potential U.S. franchisors and cooperating with UFRAD in 
putting them in contact with potential local franchisees.  

Most U.S. accounting/auditing/consultancy firms, many U.S. banks, and 
four U.S. law firms also have offices in Turkey.

DIRECT MARKETING

Unless a U.S. firm has established an office in Turkey, direct marketing 
from the U.S. without an agent is not recommended.  In fact, it is 
virtually impossible to surmount complicated bureaucratic requirements, 
language obstacles and purchasing transactions without a competent local 
agent.  Especially for those firms whose sales potential is large enough 
to warrant it, a local affiliate is the best possible way of selling to 
this market without an agent or distributor.

JOINT VENTURES/LICENSING

Most U.S. investment in Turkey is in the form of joint-venture/licensing 
operations.  Basic infrastructure for a specific industry usually exists 
within the operation of the potential local licensee or joint-venture 
partner who also has easy access to the market.  The U.S. firm brings 
the required advanced technology or know-how.  Most Turkish companies 
prefer to establish joint ventures with U.S. suppliers to overcome 
shipping costs and European competition.  Especially in view of higher 
customs taxes applied to U.S. products vis-a-vis European-origin goods 
(Turkey adopted the EU's common external tariff in 1995), local 
production is usually one way a U.S. firm can profitably penetrate the 
Turkish market.  Law No. 6224 and Decree No. 86/10353 govern joint 
ventures/licensing as well as direct foreign investment in the country.  
The government authority in charge is the Undersecretariat for Foreign 
Trade, General Directorate of Foreign Investment.  Especially in large 
urban centers, a highly sophisticated infrastructure exists in terms of 
legal support, as well as financial or consultancy services which may be 
required by potential foreign investors or joint venture partners.  
Major U.S. accounting/auditing firms, law firms and banks have 
established branches in Turkey.

STEPS TO ESTABLISHING AN OFFICE

Foreign investment and the establishment of offices in Turkey are 
governed by Foreign Investment Law number 6224 (dated January 18, 1954--
published in the Official Gazette on January 24, 1954) - "The Law 
Concerning the Encouragement of Foreign Capital," and the "Foreign 
Capital Framework Decree" number 92/2789 (dated March 4, 1992--published 
in the Official Gazette on March 20, 1992).  Under these regulations, 
foreigners may invest in Turkey, engage in commercial activities, 
participate in partnerships, purchase shares, open branch offices, and 
establish liaison offices.  The General Directorate of Foreign 
Investment (GDFI) of the Undersecretariat for Foreign Trade (UFT) is 
responsible for implementing foreign investment regulations.

A foreign company is free to choose between a corporation (Anonim 
Sirket--A.S., or "Societe Anonyme" type corporation), private limited 
company (limited liability company), or branch office as the form for 
its operations in Turkey.  The A.S. form is more suitable for larger 
projects, since corporations can attract a large number of shareholders 
and are preferred by banks for credit purposes.  The limited company 
form is more convenient for sales and distribution enterprises.

Company formation:  Application for the establishment of a new company, 
opening a branch office, or initiating participation in an existing 
company is made to the GDFI in writing.  The investment law requires 
that each partner invest a minimum of $50,000.  This may be in cash or 
in kind.  After the permission is granted, the foreign investor can form 
his or her company or branch office or begin participation in an 
existing company.

Liaison Offices:  Application to establish a liaison office is also made 
to the GDFI in writing.  A liaison office cannot engage in any activity 
in Turkey which generates revenue.  The expenditures of a liaison office 
must be met entirely from foreign currency brought in from abroad.

USFCS suggests that a lawyer be retained for fuller detail and to handle 
the application process and entity formation.

SELLING FACTORS/TECHNIQUES

Once a U.S. firm appoints an agent, the agent or distributor expects--
and should receive--the principal's full support in regard to 
literature, technical information and advertisement material.  Possible 
government buyers and potential private-sector importers should receive 
catalogs and other literature clearly indicating the name and address of 
the local agents/distributors.  A common and very effective support 
practice by European principals is to invite the agent to the 
principal's country every year for an annual sales meeting. Both agents 
and, if possible, their principals, should periodically visit existing 
and potential customers since personal contact in Turkey cannot be 
emphasized enough.

Especially in larger Turkish cities, international trade promotional 
events such as fairs, exhibits, and seminars are a common method of 
sales promotion.  These fairs are also opportunities for U.S. companies 
to assess (and meet) existing competition, since all major foreign and 
local suppliers participate in such events.  The catalogs of the events 
serve as 'trade lists' on a specific product categories.  Currently, 
there are about fifty international fair and exhibit organizers in 
Turkey.

USFCS/Turkey has been promoting attendance by prospective Turkish buyers 
at exhibits in the U.S.  Turkish visitors to those fairs return highly 
impressed by the U.S. products.  U.S. firms with prospects of large 
'package' sales could consider inviting some buyers to these events.

ADVERTISING AND TRADE PROMOTION (INCLUDING LISTING OF MAJOR NEWSPAPERS 
AND BUSINESS JOURNALS)

Chambers of commerce and industry, various associations, and specific 
sectoral publications serve as potential channels for advertisement.  TV 
commercials or ads in major newspapers are also highly effective.  In 
Turkey there are approximately ten major TV channels.  Major newspapers 
are Cumhuriyet, Hurriyet, Milliyet and Sabah all of which have their 
headquarters in Istanbul with branch offices in Ankara.  The country's 
foremost commercial/economic daily newspaper is Dunya.  Major weekly 
periodicals are: Anba Haber (economy), Barometre (economy), Detay 
(economy--also publishes tenders on equipment procurement and 
infrastructure projects), and Eba Newsletter (economy/English daily)  
Tebanews (weekly magazine-in English-on tenders, investment projects and 
economy).  There are many periodicals issued monthly.  The most 
important publications in this category are: Bilgisayar (computer and 
related equipment), Bilisim (computer and related equipment), Dunya 
Insaat (construction machinery), Finans Dunyasi (finance and economy), 
Turkey (economy), Travel Tour News (tourism), and Yazilim and Donanim 
(Software).

PRICING PRODUCT

Price is the most important consideration in government tenders.  
Private sector buyers emphasize quality, but they are also affected by 
price and financing arrangements offered by most European companies.  
U.S. firms are, therefore, advised to keep their prices as low as 
possible and consider alternative payment methods until their quality is 
firmly established in the market.

SALES SERVICE/CUSTOMER SUPPORT

Local agents/distributors of U.S. suppliers should have the required 
service and maintenance ability.  Through personal contact the potential 
customer should be convinced about this ability.  It is a further 
advantage if the U.S. firm has established its own office in Turkey and 
has servicing facilities throughout the country's major centers.

SELLING TO THE GOVERNMENT

The Turkish Government Procurement System is often frustrating and 
inconsistent, but it does not discriminate against U.S. suppliers who 
succeed in winning a large number of international tenders.  The main 
law which administers government procurement is the State Procurement 
Law No. 2886 (dated September 8, 1983).  This law covers the agencies 
which have budgets allocated to them from the central budget.  In 
Turkey, many state-owned corporations (the state economic enterprises--
SEE's) generate revenues through sales of raw materials, semi-finished 
and finished products and services.  Each of these has its own 
procurement rules and regulations in its operating charter.  These 
regulations are much more flexible than Law No. 2886 since these SEEs 
operate as quasi-private sector companies.  In terms of financial 
obligations and practices, their procurement regulations are largely 
based upon a government decree called "the Decree on the Operations of 
the State Economic Enterprises" no. 233 (dated June 8, 1984), Turkey's 
Law of Obligations No. 818 (dated April 22, 1926), and the Turkish 
Commercial Code No. 6762 (dated June 29, 1956).  Other exceptions are 
the Undersecretariat of Defense Industries (SSM) and Ministry of 
National Defense.  SSM procurement is financed off-budget, through 
special taxes, and is not subject to Law 2886.

Price, quality and financial credit terms and length of repayment period 
are the most important factors in purchasing decisions.  Other factors 
which affect sourcing decisions are the suppliers' reputation, the 
reputation of their products for quality and reliability, and previous 
experience in dealing with suppliers.

In government tenders, state organizations give particular importance to 
the way proposals are prepared and to their adherence to administrative 
and technical specifications.  Generally, the validity of the proposal 
must be three to six months from the bid date and the same validity is 
to be given for the bid bond.  (A bid bond is required, so that the 
bidder later on does not retract his offer.  If he does, the bid bond is 
forfeited.)  The bid bond is usually obtained from the actual supplier 
for three percent of the bid amount.  The performance bond is usually 
six percent of the contract amount and is valid throughout the delivery 
or final acceptance beginning from the contract date.  All bonds have to 
be counter-guaranteed by a Turkish national bank.

BOT (build-operate-transfer) investments are nowadays the preferred 
procurement method by the Turkish Government especially in power, 
airport and port projects.  The concept involves offering foreign 
companies the opportunity to participate as investors in the large 
infrastructural projects.  The underlying formula is that parties 
interested in contracting, engineering or other aspects of a major 
project should come in as investors.  Foreign investors are then allowed 
to operate the project for a pre-agreed period (usually 15 to 25 years) 
corresponding to the economic life of the asset before handing it over 
to the state.  In BOT projects, usually a consortium of companies 
arranges financing without government guarantees.  

The BOT Law No. 3996 (dated June 8, 1994) became effective from June 13, 
1994.  The subject law describes regulations and procedures to be 
followed in BOT practices.  According to the law, Turkish Government can 
have private firms and foreign firms make investments on BOT basis for 
bridges, tunnels, dams, irrigation, potable water, treatment plants, 
sewage systems, telecommunications, power generation, transmission, 
distribution, mining, environmental prevention investments, ports and 
airports.

PROTECTING YOUR PRODUCT FROM INFRINGEMENT

Turkey lacks adequate, modern laws concerning intellectual property 
protection, and even in cases of clear infringement enforcement is lax 
and penalties are not severe.  In order for action to be taken, a 
company must present authorities with an iron-clad case.  In this 
environment, protecting products becomes a creative challenge for 
vulnerable companies.

NEED FOR A LOCAL ATTORNEY

English-speaking attorneys specialized in commercial law, investment 
legislation, joint ventures, corporate law, tax law, bankruptcy law, 
public finance, banking corporations, criminal law, civil law and in 
other areas are available for consultation by U.S. business people.  A 
list of specialized attorneys is available in US&FCS offices in Turkey.  
The list includes the following U.S. law firms operating in Turkey:  
Altheimer & Gray, Arnold & Porter (liaison office:  Metin Somay Law 
Offices), McDermott, Will & Emery, and White & Case.


CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES

RANK OF SECTOR:  1
NAME OF SECTOR:  TELECOMMUNICATIONS EQUIPMENT
ITA INDUSTRY CODE:  TEL

Recent laws passed by the Parliament should produce a boom in this 
sector.  New licenses will be issued for value added services most 
requiring new investments.  Existing services, e.g., paging systems, 
analog type cellular phone networks, cable-TV, will need to be 
modernized and/or expanded for better service and more customers.  

The telephone network structure needs to accommodate more subscribers 
and to improve quality.  Intelligent network systems, ISDN, and fiber in 
the loop systems will be future trends.  The new telecommunications law 
specifies that 20 percent of the income obtained from licensing fees for 
value added services and 20 percent of Turk Telecom privatization 
revenues will be used to improve the telephone structure.  This revenue 
is estimated at over $3.5 billion.  Thus, a major opportunity in this 
field exists and is expected to grow with international projects such as 
fiber optic cable (including submarine types), microwave and satellite 
projects to serve Turkey and East European, Black Sea countries, and the 
Turkic Republics.


                            1994  1995  1996

A. Total Market Size         925  1,060  1,210
B. Total Local Production    640    700    770
C. Total Exports              95    100    110
D. Total Imports             380    460    550
E. Imports from the U.S      252    300    350
F. Exchange Rates         30,000  46,400  67,000

The above statistics are unofficial estimates.

RANK OF SECTOR:  2       
NAME OF SECTOR:  ELECTRIC POWER SYSTEMS
ITA INDUSTRY CODE:  ELP 

Turkey requires an average annual increase in installed capacity of 1400 
MW until the year 2000.  A recent study made by Turkish Electricity 
showed that $31.5 billion must be spent during the next 15 years to meet 
demand.  The Turkish Government is encouraging foreign companies to 
invest in the power sector.  Currently, U.S. firms are pursuing six BOT 
power projects worth $2.4 billion that are already in progress.  

Potential autogeneration projects, i.e., manufacturing centers building 
their own power sources, are another good reason why this sector should 
continue to be a best prospect.  Transmission and distribution sectors 
must be developed as well.  These will require $8.5 billion in financing 
until the year 2010.  Renewable energy such as wind and biomass projects 
will be needed in the future.  Finally, the Turkish Government is 
currently planning to privatize nine thermal power plants.

                               1994   1995   1996
A. Total Market Size          1,800  1,900  2,000
B. Total Local Production       920  1,000  1,100
C. Total Exports                200    250    300
D. Total Imports              1,080  1,150  1,200
E. Imports from the U.S.        145    190    250
F. Exchange Rates            30,000  46,400  67,000

The above statistics are unofficial estimates.


RANK OF SECTOR:  3
NAME OF SECTOR:  TEXTILE MACHINERY AND EQUIPMENT 
ITA INDUSTRY CODE:  TXM

Turkey is the world's seventh largest cotton producer and the sixth 
largest textile/apparel exporter; the textile sector is Turkey's largest 
exporter.  With completion of the South Anatolia Project (GAP), cotton 
production is expected nearly to double.  Moreover, EU quotas on Turkish 
apparel are expected to be dropped.  In consequence, future production 
prospects are excellent and Turkey will have to import more advanced 
textile machinery.  Most textile machinery is exempted from import 
duties, if imported from EC or EFTA countries, but subject to 2.5-4.5 
percent duty if imported from elsewhere, including the United States.  
Market is currently dominated Germans, Swiss and Italians.  

In certain areas of this market, there is strong preference for U.S. 
machinery.  Warping, sizing, denim producing, finishing and computerized 
apparel manufacturing machinery and auxiliary machinery like dobbies, 
automatic stop motions, shuttle changing mechanism, combs and jacquards 
are among these.  Germany, Turkey's primary apparel export market, will 
start refusing products which are not produced under proper ecological 
rules.  This has special implications for imported finishing and dyeing 
equipment.

U.S. companies have a most promising future in this market, which is 
likely to grow eastward to include the Turkic Republics.  U.S. companies 
who select aggressive local agents with no ties to European companies 
have the greatest probability to increase exports here.


                              1994    1995    1996
A. Total Market Size           448     873    1434  
B. Total Local Production       25      32      45  
C. Total Exports                 8       9      11      
D. Total Imports               431     850    1400  
E. Imports from the U.S.        14      34      70
F. Exchange Rate            30,000  46,400  67,000

The above statistics are unofficial estimates.


RANK OF SECTOR:  4
NAME OF SECTOR:  TELECOMMUNICATIONS SERVICES
ITA INDUSTRY CODE:  TES

Privatization of Turkish Telecom is expected to attract additional 
investments in data, voice and video satellite services.  The data 
communications industry in Turkey is moving towards efficient satellite 
communication, providing services to banks, newspapers, government 
offices, transportation companies, universities and others.

COMSAT Digital Communications Services has been involved in a revenue 
sharing arrangement with PTT for several years, and has recently 
expanded into VSAT network systems through an arrangement with Sumitomo 
and Koc-Unisys, the TURVSAT earth station.  Applications include new 
services such banking, pipeline monitoring, reservation networks, and 
electronic mail.  End-users of these applications in Turkey are banks, 
airlines, transportation companies, energy pipelines, mines, automotive 
centers, hotels, and broadcasting centers.

The Turkish Government's standards regulations for telecom services are 
not clear yet.  Experts are skeptical about obtaining guidance for third 
party investors in the near future.  COMSAT and other firms are trying 
to convince the government that competitive regulations would encourage 
foreign investment and are essential to growth in telecom services.

Value added services such as cellular, paging, cable TV, pay phones, 
directory services, and interactive TV are expected to grow broadly over 
the next three years because they will be licensed to the private 
sector.

Demand for telecom services in the markets of Central Asia has spurred 
growth for Turkey-based firms, which can benefit from the proximity to 
the region by offering satellite services to newspapers, foreign 
businesses, and others which utilize satellite equipment in these 
countries.


                                   1994  1995  1996
A. Total Sales                    2,810  3,090  3,300
B. Sales by Local Firms           2,715  2,950  3,100
C. Export Sales by Local Firms      150    160    180
D. Sales by Foreign-Owned Firms      95    140    200
E. Sales by U.S.-Owned Firms         35     50     90
F. Exchange Rates                30,000  46,400  67,000          

The above statistics are unofficial estimates.




RANK OF SECTOR:  5
NAME OF SECTOR:  MEDICAL EQUIPMENT 
ITA INDUSTRY CODE:  MED

The improvement of health care is a priority for the Turkish Government.  
Demand is growing for imports of sophisticated laboratory equipment, 
diagnostic imaging devices, items for nuclear medicine, cardiovascular 
surgery and x-ray.  The total 1995 Turkish market for medical equipment 
and devices is about $310 million.   

U.S. medical equipment and supplies are highly regarded in Turkey.  The 
Turkish medical/business community is very receptive to U.S. companies.  
Germany has been, and will remain, the second most important supplier 
for this market.  

The largest purchaser of clinical devices in Turkey is the Ministry of 
Health and its health care facilities.  Teaching hospitals, university 
hospitals, and the small but lucrative private hospital system, as well 
as physicians' offices, are all oriented to higher-technology products.  
Buyers prefer U.S. suppliers' high tech products, but consider them 
expensive.  The Second Health Project, which began in December 1994, has 
a total budget of $200 million.  It aims at improving health services in 
23 low income provinces in eastern Turkey, and will be completed by the 
end of 2001.               

                                     1994  1995    1996
A.  Total Market Size                250    310     350
B.  Total Local Production            75     75      80
C.  Total Exports                     10     20      30
D.  Total Imports                    185    255     300
E.  Imports from the U.S.             20     30      40
F.  Exchange Rates                30,000  46,400  67,000

The above statistics are unofficial estimates.


RANK OF SECTOR:  6
NAME OF SECTOR: BUILDING PRODUCTS
ITA INDUSTRY CODE: BLD

Construction is a key sector in the Turkish economy, providing 
employment for over 1 million people and serving as a locomotive for 
several other sectors.  In 1993 the construction sector grew by 8 
percent, but because of an economic crisis in early 1994 it shrunk by 2 
percent in 1994.  However, the industrial sector shrunk by 5.7 percent 
and the commercial sector by 7.5 percent during the same period.
  
In 1995 and after the sector must grow to accommodate an annual demand 
for 600,000 dwellings, as well as commercial buildings necessitated by 
rapid urbanization and the growing economy.  Most building products are 
manufactured locally.  However, foreign building materials are 
increasingly used, especially in tourism facilities which are allowed 
customs-free importation of materials.  Imports of raw materials and 
auxiliary building products are also expected to increase in order to 
support Turkey's international construction projects. Prefabricated 
residences, logs, lumber, and insulation materials from the U.S. have 
the best sales prospects.

                                   1994    1995    1996
A. Total Market Size              1,950   3,150   3,600
B. Total Local Production         2,800   3,000   3,400
C. Total Exports                    400     550     700
D. Total Imports                    550     700     900
E. Imports from the United States    80      90     100
F. Exchange Rates                30,000  46,400  67,000

The above statistics are unofficial estimates.


RANK OF SECTOR:  7
NAME OF SECTOR:  COMPUTER SOFTWARE
ITA INDUSTRY CODE:  CSF

Turkey's total electronic data processing (EDP) systems market was 
nearly $1 billion in 1993, and 60 percent of this amount was imported.  
Annual PC sales increased by 100 percent between 1990 and 1993.  Still, 
Turkey's per capita annual investment in EDP systems is only $15.  If 
this amount were to reach the level of Greece ($70), this would mean a 
five-fold increase in the market.  

Software constitutes about 15 percent of the total EDP market.  This low 
share is due to the novelty of the sector and insufficient legal 
protection for intellectual property (IPR) in Turkey.  Both of these 
drawbacks should be eliminated soon as major software firms of the world 
enter the local market, and the Turkish Government takes IPR measures to 
conform to EU requirements.  

Another boost to software sales is Turkey's prospective Customs Union 
with Europe which will spur productivity.  Elimination of customs duties 
will make the country more accessible for European affiliates of U.S. 
suppliers.  Privatization of state enterprises will also result in 
increased use of EDP as the number of personnel is reduced.  
U.S. firms presently dominate both the hardware and software market in 
Turkey and are expected to continue to do so for the foreseeable future.

                                1994    1995    1996
A. Total Market Size              65      79      90
B. Total Local Production         35      40      50
C. Total Exports                   -       1       5
D. Total Imports                  30      40      45
E. Imports from the U.S.          20      25      30
F. Exchange Rates             30,000  46,400  67,000

The above statistics are unofficial estimates.


TITLE:  AUTOMOTIVE PARTS/SERVICE EQUIPMENT 
SECTOR RANK: 8
ITA INDUSTRY CODE:  APS

This sector supplies parts, 20 percent of which are imported, and 
services to an automotive market of 3.7 million automobiles.  In the 
early 2000s, production of new cars in Turkey is estimated to reach 1 
million per year.  Currently, there are fifteen companies in the 
automotive sector.  Additionally, three Asian companies--Honda, Hyundai 
and Mazda--have started investing here.  The automotive market has 
returned to growth after the 1994 downturn.    

Analysts consider that this sector will remain Turkey's second largest 
export sector, following textiles and apparel, for the next 10 years.  
This sector, which grew by 32 percent in 1993, has completed new 
investments to compete globally both in quality and quantity.  
Currently, it is working under capacity, but as export markets grow, 
this will change.

After Turkey joins the EU Customs Union in 1996, Turkey's spare parts 
exporters will increase market share in the EU countries, even though 
competition in Turkey will increase for vehicles.  Experts expect that 
Turkey will attract new investments from the spare parts industry to 
benefit from the lowest labor costs in the whole European market.    

Currently, European suppliers, followed by Japanese, dominate the 
market.  However, U.S. companies can increase their market share in 
catalytic convertors, engine bearings, radiators, mufflers, exhaust 
pipes, spark plugs and service equipment including lifts, especially 2-4 
column ones, die cabinets and gas analyzers, electronic test equipment 
and diagnostic equipment.     

                                 1994    1995    1996
A. Total Market Size            1,830   1,980   2,140
B. Total Local Production       1,450   1,600   1,760
C. Total Exports                  540     595     655
D. Total Imports                  920     975    1035
E. Imports from the U.S.           46      49      53
F. Exchange Rates              30,000  46,400  67,000

The above statistics are unofficial estimates.


RANK OF SECTOR: 9
NAME OF SECTOR:  AIRPORT/GROUND SUPPORT EQUIPMENT SERVICES
ITA INDUSTRY CODE:  APG

The increase in aircraft, passenger and air cargo traffic, the expansion 
and modernization of existing airports, and plans for the construction 
of new commercial airports to meet increased traffic demand, underline 
Turkey's growing need for airport ground support and handing equipment.  
HAVAS, Turkey's largest airport ground handling company, which is under 
privatization, is planning $16 million of investments to renew its 
ground handling equipment inventory.

New airports are planned for:  Sanliurfa  (GAP region), Adana, Bodrum, 
Istanbul (at Kurtkoy, Anatolian side), and Samsun (Carsamba).  
Contracting for the construction of new international terminals at 
Istanbul and Antalya airports is expected soon.  The State Airports 
Administration (DHMI) is currently making investments to bring Turkish 
airports up to international standards.

Airport Ground Handling Equipment:  The two important end-users of 
airport ground handling equipment are HAVAS and CELEBI.  Turkish 
airlines (THY), Turkey's largest state-run airline,  also provides 
ground support services in small airports.  Types of equipment needed 
primarily from foreign sources are: aircraft towing tractors, ground 
power units, air starter units, high loaders, and self propelled 
passenger steps.

Air Traffic and Navigational Equipment:  Devlet Hava Meydanlari 
Isletmesi (DHMI) is responsible for all civil air traffic control 
operations and navigational aid in Turkey, needs equipment and 
instrumentation to upgrade and modernize existing airports.  Needed 
equipment includes: ILS, VOR, DME, communication equipment, other 
navigation and air traffic control systems, and meteorological 
apparatus.  

Due to their technical superiority, U.S. products in this sector enjoy 
an excellent reputation and have a high share of imports.  (Equipment 
needed by military airports is excluded from this analysis.)

                                 1994  1995      1996
A. Total Market Size               13    18        24
B. Total Local Production           3     4         5
C. Total Exports                    -     -         -
D. Total Imports                   10    14        19
E. Imports from the United States   6     9        12
F. Exchange Rates              30,000  46,400  67,000

The above statistics are unofficial estimates.


RANK OF SECTOR:  10
NAME OF SECTOR:  ELECTRONIC INDUSTRY PRODUCTION AND TEST EQUIPMENT
ITA INDUSTRY CODE:  EIP
  
The Turkish electronic industry is growing rapidly.  Despite an 
interruption in investments in 1994 due to economic crisis, the sector 
is expected to boom in forthcoming years.

Turkey's electronic industry is active in the following subsectors: 
components, consumer electronics, telecommunications equipment, defense 
electronic equipment, computers, and industrial electronic equipment.  
Once privatization of the telecommunications sector is completed, new 
regulations for telecommunication services and licenses are expected.  
This will produce a considerable increase in the market for 
telecommunications/electronics industry production, test and measurement 
equipment.

                              1994    1995    1996
A.  Total Market Size          140     150     165
B.  Total Local Production      51      56      62
C.  Total Exports                1       1       2
D.  Total Imports               90     100     110
E.  Imports from the U.S.       15      17      19
F.  Exchange Rates          30,000  46,400  67,000

The above statistics are unofficial estimates.


RANK OF SECTOR:  11
NAME OF SECTOR:  ARCHITECTURAL/CONSTRUCTION/ENGINEERING SERVICES
ITA INDUSTRY CODE:  ACE

Turkey's architectural, construction and engineering (ACE) services 
sector must address its tremendous infrastructure needs.  The value of 
major project contracts signed in 1994 funded by treasury-guaranteed 
foreign credits was $2.1 billion.  In order to meet demand, the Turkish 
Government must continue to invest in major infrastructure projects over 
several years, and Turkey should offer a strong market for U.S. 
services.

Upcoming major infrastructure projects requiring advanced technology and 
foreign expertise include:  Izmit gulf motorway bridge, Dardanelles 
motorway bridge, Istanbul Ataturk airport's new international terminal, 
the $1.2 billion Melen potable water project, the Bosphorus tube tunnel, 
the Bosphorus third bridge, construction of several thermal and 
hydroelectric power plants, a nuclear power plant, construction of new 
airports and ports, and water, waste water, and solid waste management 
projects in major cities.  

According to its master plan, Istanbul's water and waste water projects 
proposed for 1995 - 2002 are worth around $4 billion.  The 
Azerbaijan/Turkey crude oil pipeline, and the Turkmenistan/Kazakhstan/ 
Turkey natural gas line will most likely be constructed in the coming 
years.  Both projects will require foreign expertise.

Generally, Turkey is self-sufficient in construction services, but 
foreign assistance is sought for major projects which require advanced 
technology.  The services of foreign firms are obtained for feasibility 
studies, final project design work, and construction of large and 
complex projects that require advanced technology and supervision. 
Whenever possible, U.S. firms should form joint ventures with Turkish 
firms to take advantage of the low cost Turkish labor force.  

Main third country suppliers of ACE services in Turkey are Germany, 
Italy, Japan, Sweden, and the U.K.  Most European countries active in 
this market have been making soft, tied loans for Turkish projects.  
Build-Operate-Transfer (BOT), and Build-Own-Operate (BOO) projects are 
also good opportunities for U.S. companies.
  


                                     1994    1995    1996
A. Total Sales                        225     250     315
B. Sales by Local Firms               235     265     330
C. Export Sales by Local Firms        100     110     120
D. Sales by Foreign Owned Firms        90      95     105
E. Sales by U.S. Owned firms           20      22      25
F. Exchange Rates                  30,000  46,400  67,000
    


RANK OF SECTOR:  12
NAME OF SECTOR POLLUTION CONTROL EQUIPMENT
ITA INDUSTRY CODE:  POL

Turkey's high birth rate, coupled with rapid urbanization and 
industrialization, has created enormous environmental problems--solid 
waste disposal, waste water contamination, and air pollution.  The 
Ministry of Environment has adopted U.S. EPA regulations for 
environmental protection.  Enforcement of these regulations is under the 
authority of municipalities, some of which are striving hard to exercise 
it.  

Municipalities are seeking investments in pollution control.  Either 
through their own resources or backed by foreign financing, they hope to 
are launch major environmental infrastructure projects creating 
lucrative business opportunities.  

For example, Izmir has plans for control of pollution in its bay.  
Istanbul municipality is preparing to tackle protection of the Sea of 
Marmara.  Both public and private sectors have been active in developing 
pollution control projects, although they are hampered by a dearth of 
local investment funding.  Breakdown of the market according to 
subsectors in 1995 is as follows (in US$ millions): solid waste (175), 
water treatment (130), air pollution control (99).     
  

                               1994     1995  1996
A.  Total Market Size            343     404     506
B.  Total Local Production       172     213     271
C.  Total Exports                  7       8      10
D.  Total Imports                164     183     225
E.  Imports from the U.S.         14      15      18
F.  Exchange Rates            30,000  46,400  67,000

The above statistics are unofficial estimates.


RANK OF SECTOR: 13 
NAME OF SECTOR: FOOD PROCESSING AND PACKAGING EQUIPMENT
ITA CODE: FPP

Turkey is rich agriculturally and is an exporter of most agricultural 
products.  Agricultural development is certain to boost demand for food 
processing machinery.. For example, with the completion of the 
irrigation component of the Southeastern Anatolia Project (GAP), there 
will be 300 thousand hectares of land opened up to agriculture.  The 
region is expected to change from dependent on agricultural imports to 
an exporter of many types of food products.  

Another stimulus for imports of modern food processing and packaging 
equipment is a dramatic increase in supermarkets, the adoption of EU 
packaging standards, and implementation of an agri-export strategy.  
Sophisticated packaging and labelling equipment are needed to improve 
efficiency and quality of packaging.  Other relevant food processing 
imports will be:  filtering, purifying and sorting equipment, 
refrigeration units, oil/fat extractors, computerized inventory systems 
for warehouses, and process control equipment.  

Although the U.S. holds a small share of this market, aggressive local 
representatives, trained service personnel and a stock of spare parts 
would go a long way toward increasing market share in what is becoming a 
highly competitive sector.  
    
                              1994    1995  1996
A. Total Market Size          220     230    252
B. Total Local Production     125     140    150
C. Total Exports               20      25     30
D. Total Imports              130     136    149
E. Imports from the U.S.       14      15     17
F. Exchange Rate           30,000  46,400  67,000

Note: The above statistics are unofficial estimates.


RANK OF SECTOR:  14    
NAME OF SECTOR:  SECURITY SERVICES/EQUIPMENT
ITA INDUSTRY CODE:  SEC

The private security sector is a very new industry only recently 
recognized by Turkish authorities as a legal service for private 
enterprises.  In the past, only local police departments assumed 
security for both public and private organizations, including banks and 
commercial centers.  Now, demand for more sophisticated, efficient 
services to fit the needs of private residence owners and commercial 
enterprises is on the rise.

U.S. electronic security equipment is used by several top firms in 
Turkey, although electronic security equipment subsector is still small.  
New applications for electronic security systems in the near future 
include factories, private banks, and private businesses.  U.S. 
electronic security equipment is cheaper than European counterparts and 
is generally recognized as the best for use in central station network 
applications.

Private Turkish banks and other cash-based establishments are starting 
to contract out for cash-in-transit (CIT) services for the first time.  
Armored vehicles and equipment are in demand, as banks and private firms 
are becoming more security conscious about money transport.  U.S. firms 
with expertise in high-tech equipment should consider joint ventures 
with locally based security companies looking for diversification.  


                           1994   1995  1996
A.  Total Market Size         75  110  150
B.  Total Local Production   n/a  n/a  n/a
C.  Total Exports            n/a  n/a  n/a
D.  Total Imports            n/a  n/a  n/a
E.  Imports from the U.S.
F.  Exchange Rates        30,000  46,400  67,000

The above statistics are unofficial estimates.  Total import/export 
statistics are not yet available.


SECTOR RANK:  UNRANKED*
NAME OF SECTOR:  DEFENSE INDUSTRY EQUIPMENT
ITA INDUSTRY CODE:  DFN

Turkey's April 1994 economic austerity measures forced military 
procurement agencies (including the Undersecretariat for Defense 
Industries--SSM) to postpone, reduce in size, or cancel some defense-
related procurement programs.  Nevertheless, Turkey, in a difficult 
geopolitical location, maintains the second largest armed forces in 
NATO--over 800,000 personnel or 37 percent of the standing manpower 
forces in Europe available to NATO.  

In 1984, Turkey began a defense-related modernization program which 
involves coproduction of F-16 fighter aircraft, armored infantry 
fighting vehicles, shoulder-launched Stinger missiles and light 
transport aircraft.  At present, while Turkey cannot finance all of its 
planned defense procurement projects, it will remain a good market for 
U.S. off-the-shelf products. 

Receptivity to U.S. defense products is high in the Turkish market.  We 
expect that as Turkish economic conditions improve, the market for U.S. 
defense-related products will again offer good opportunities for U.S. 
producers.  Future requirements of the Turkish Armed Forces include  
attack and army scout helicopters, airborne warning and control systems, 
modern tanks, tank rescue vehicles, patrol boats, improved 
communications, mobile radars and various types of advanced warships.  


                               1994   1995  1996
A.  Total Market Size         2,010  1,800  1,900
B.  Total Local Production      300    500    500
C.  Total Exports                50    200    300
D.  Total Imports             1,760  1,500  1,700
E.  Imports from the U.S.       700    500    800
F.  Exchange Rates           30,000  46,400  67,000

Note: The above statistics are unofficial estimates.

*We have chosen not to rank this sector, as its growth is dictated by 
government procurement rather than market forces.  



BEST PROSPECTS FOR AGRICULTURAL GOODS


RANK                          SECTOR

1               Tobacco
2  Rice 
3   Vegetable Oil
4   Wood Logs
5   Cotton
6   Tallow



AGRICULTURE:  TOP THREE SECTORS
(all figures in metric tons)

A. Rank: 1
B. Name of Sector: TOBACCO
C. PS&D Commodity Heading: 
  1994  1995(est)  1996(prj)
D. Total Consumption  154,000  182,000  190,000
E. Total Local Production  213,000  220,000  220,000
F. Total Exports  121,000  120,000  125,000
G. Total Imports  21,000  26,000  30,000
H. Total Imports from U.S.  16,000  19,000  22,000


A. Rank: 2
B. Name of Sector: RICE
C. PS&D Commodity Heading: 
  1994  1995(est)  1996(prj)
D. Total Consumption  400,000  425,000  450,000
E. Total Local Production  165,000  165,000  165,000
F. Total Exports  2,000  2,000  2,000
G. Total Imports  250,000  275,000  285,000
H. Total Imports from U.S.  200,000  210,000  210,000


A. Rank: 3
B. Name of Sector: VEGETABLE OIL
C. PS&D Commodity Heading: 
  1994  1995(est)  1996(prj)
D. Total Consumption  940,000  950,000  960,000
E. Total Local Production  625,000  600,000  620,000
F. Total Exports  255,000  100,000  110,000
G. Total Imports  505,000  4,500,000  500,000
H. Total Imports from U.S.  85,000  85,000  85,000


SIGNIFICANT INVESTMENT OPPORTUNITIES

Telecommunications Value Added Services Licensing:

There is great potential in the telecommunications sector for U.S. 
firms.  Under a World Bank credit and also with the support of U.S. 
Trade and Development Agency, Privatization Administration (PA) of 
Turkey will soon hire U.S. consultants to advise PA on the policy 
framework of value added services in the telecom sector.  License 
tenders will be out from the beginning of 1996 for cable-TV (on regional 
basis), pay phones, paging services license, a third cellular license, 
data communications and maybe more.  Strong demand exists for all these 
services with a population at 2.3 percent per year.
 
Power Sector--BOT Power Projects:

Demand for power is growing at a rate of 8 percent every year in Turkey.  
Medium term projections indicate that Turkey needs an average of 1400 MW 
additional power capacity each year to meet the demand until the year 
2000.  The Turkish Government is giving strong encouragement to foreign 
companies to invest in BOT power projects.  Ministry of Energy and 
Natural Resources (MENR) will soon announce a BOT tender for 
construction of several hydroelectric power plants.  MENR has currently 
six U.S. companies involved in BOT type thermal power (natural gas fired 
or coal fired) plant proposals with a total project cost of $2.5 
billion.  MENR is open to discuss other BOT investment proposals.

The Government of the United States acknowledges the contribution that 
outward foreign direct investment makes to the U.S. economy.  U.S. 
foreign direct investment is increasingly viewed as a complement or even 
a necessary component of trade.  For example, roughly 60 percent of U.S. 
exports are sold by American firms that have operations abroad.  
Recognizing the benefits that U.S. outward investment brings to the U.S. 
economy, the Government of the United States undertakes initiatives, 
such as Overseas Private Investment Corporation (OPIC) programs, 
investment treaty negotiations and business facilitation programs, that 
support U.S. investors.


CHAPTER VI.  TRADE REGULATIONS AND STANDARDS

TRADE BARRIERS, INCLUDING TARIFFS, NON-TARIFF BARRIERS AND IMPORT TAXES

Turkey is a member of the GATT and regulates its customs practices in 
line with GATT requirements.  In 1989, Turkey, along with the United 
States, converted to the new GATT Harmonized System.  Trade with the 
United States is based on the Treaty of Commerce and Navigation of 1929.  
It provides for the mutual unconditional most-favored-nation treatment 
in the application of all import and export duties and restrictions.  

However, European Union (EU) and EFTA countries are assigned a lower 
duty rate under Turkey's association agreement with the EU and its free-
trade agreement with EFTA countries.  Scheduled duty reductions outlined 
in Turkey's 1964 EC association agreement were enumerated in the 1993, 
1994 AND 1995 Import Regimes.  Duty rates are higher for some U.S. 
products and other non-EU/EFTA countries, even though overall duties 
have been reduced.  Turkey is scheduled to complete a customs union 
agreement with the EU by the end of 1995 and all goods imported from the 
EU will be duty free.  Most goods, except textiles and some agricultural 
goods export from Turkey to the EU, are already free from duties.

CUSTOMS VALUATION

Import duties are calculated exclusively on C.I.F. prices.  Importers 
are also responsible for paying the VAT.  The VAT is calculated on a 
C.I.F. basis and has a ceiling of 23 percent; however, most industrial 
products are charged a rate of 15 percent.  VAT is also charged to 
locally produced goods.  Capital goods, some raw materials, imports by 
government agencies and enterprises, and products for investments with 
incentive certificates are exempt for import fees. 


IMPORT LICENSES

All importers must obtain a general import license valid for one year 
from the Undersecretariat of Foreign Trade (UFT).  The general license 
specifies two-digit H.S. numbers, or chapters of products, that the 
importer is allowed to import.  There are no restrictions on obtaining a 
general import license.

All importers are required to obtain an import permission certificate 
for each type of item to be imported.  Without an import permission 
certificate, a bank cannot issue foreign exchange for payment.  Import 
certificates are obtained from the Turkish Central Bank or commercial 
banks.  Goods cannot be cleared through Customs without a separate 
certificate for each eight-digit customs tariff code product.  An import 
certificate is valid for the periods specified by the importer and can 
be extended if necessary by banks.  The country from which goods are 
being received, the country of origin, the country where payment is to 
be transferred, and the importer's name must be stated on the import 
permission certificate.  

For imports of motion pictures, full-video cassettes and their 
brochures, and advertisements, an import certificate is issued by banks.  
Only the actual cost of the item is considered, not the royalty costs.

As a general practice, parts not specified on the import certificate 
that need to be transported with a machine due to technical concerns are 
permitted by Turkish Customs without any duty charge.

EXPORT CONTROLS

Turkey was a member of COCOM and has actively participated in the 
planning discussions for a COCOM-successor regime.  Since Turkey is not 
a major producer or exporter of dual-use or other sensitive 
technologies, the country's export control inspection and licensing 
infrastructure is dispersed and only loosely linked, involving the 
Ministry of Industry and Trade, Undersecretariats of Customs and the 
Treasury, and participation by expert scholars and technicians from 
academia on an ad hoc basis.  However, talks are under way within the 
government to consolidate appropriate export control and 
nonproliferation experts from the various ministries into one 
nonproliferation agency attached to the Ministry for Foreign Affairs.  
Legislation has been drafted to this effect, but not yet submitted to 
Parliament. 

IMPORT/EXPORT DOCUMENTATION

Turkish documentation procedures follow the European Union system.  All 
commercial shipments must be accompanied by a commercial invoice, a 
certificate of origin and a bill of lading or airway bill, depending on 
the method of shipment used.

Commercial Invoice: The commercial invoice must be submitted in 
triplicate, including the original copy; it must contain a complete 
description of the goods and all required payment terms.  The original 
must be signed by the exporter as follows: "We hereby certify that this 
is the first and original copy of our invoice, the only one issued by 
our firm for the goods herein mentioned."  It must be certified by the 
Turkish Embassy or Consulate in the United States.  The charge for 
certification is .004 percent of the shipment's value.  At least one 
copy of the invoice should travel with the goods, and the original 
should be sent to the importer through the correspondent bank.

Certificate of Origin: The certificate of origin is to be prepared in 
duplicate.  No corrections are permitted on this document, which is to 
be prepared in English by a local chamber of commerce.  The certificate 
of origin must be certified by the Turkish Embassy or Consulate in the 
United States.  One copy of the document must be surrendered to the 
customs authorities at the time of importation.

Bill of Lading: Details in the bill of lading should correspond exactly 
to those given in other shipping documents.

Pro-forma Invoices: The pro-forma invoice, which supports an import 
permit application, must be no more than six months old at the time of 
application, contain an unexpired option (if appropriate), indicate 
freight and insurance charges separately, and bear the importer's name.  

TEMPORARY ENTRY

A material may be temporarily imported into Turkey without payment of 
duties and tax if it is to be used in the production or manufacture of a 
product that is to be exported.  The importer gives security in the form 
of a bank guarantee in the amount of applicable duties and taxes.  Upon 
exportation of the finished product, the guarantee is released.  
Temporary admission of goods intended for reexport in their original is 
permissible free of import duties and taxes with the approval of the 
Undersecretariat for Foreign Trade.

Books, newspapers, magazines, catalogs, pamphlets, brochures, and 
similar advertising materials are exempt from customs duty.  Samples of 
no commercial value are admitted duty free.

Samples with commercial value may be imported into Turkey under the 
temporary importation system.  For samples imported under this system, a 
letter of guarantee is required by the customs authorities.  The letter 
of guarantee should be prepared to reflect the value of the samples as 
if they were actually being imported.  At the end of the temporary 
importation period, generally six months and extendable for another six 
months, or when the samples are reexported, the letter of guarantee is 
returned by the customs authorities.

U.S. traders may also wish to consider a more simplified procedure in 
the form of a "ATA Carnet."  Carnets are international customs documents 
permitting the holder to temporarily import products as samples without 
paying customs duties or posting bonds.  In the United States, carnets 
are sold by the U.S. Council for International Business at the following 
locations: in New York, NY, (212) 354-4480; Long Beach, CA 90010, (310) 
420-2777; Schaumburg, IL, (708) 490-9696; San Francisco, CA (415) 956-
3356; Miami, FL (305) 592-6929; Timonium, MD (301) 561-0438; Boston, MA 
(617) 737-3266; and Houston, TX (713) 847-5693.

LABELING, MARKING REQUIREMENTS

All packages, cases, and bales must bear shipping marks, numbers, 
dimensions, and the gross weight of the merchandise.  Packages and the 
bills of lading that are to be shipped through Turkey should be marked 
"In Transit."  All goods entering Istanbul or any other entry port in 
Turkey (Izmir, Mersin, Iskenderun, Sinop, Samsun, and Trabzon) will be 
cleared through customs, and full payment of duty will be required 
unless the packages and bills of lading are marked "In Transit."  If so 
marked, the goods may be cleared for entry and reshipped.

PROHIBITED IMPORTS

Products which are currently prohibited include weapons and narcotics.  
However, under certain conditions the Ministry of the Interior, Security 
General Directorate will provide clearance to import shotguns, hunting 
rifles, and explosives.  The 1995 Turkish Import Regime also prohibits 
the importation of products containing fluorocarbon-type materials from 
countries that have not signed the standards (e.g., ISO 9000.)

The metric system is used for weights and measures.  Electrical current 
is 220 volt, 50 cycles.  Time in Turkey is seven hours later than 
Eastern Standard Time.  From April through October, Daylight Savings 
Time is used.

The Turkish Standards Institution (TSE), established in 1954, sets 
standards in Turkey and keeps abreast of standards in other countries.  
TSE, an accredited agency in the international markets, issues the 
guarantee certificates.  Almost all the major companies seek TSE's 
certification for their products.  This certificate helps to ensure 
manufacturers fair competition and ensures the consumer of the quality 
of goods purchased.  Correspondence to the TSE should be addressed as 
follows: Turk Standartlar Enstitusu, Necatibey Caddesi, Ankara, Turkey.  

Turkey has around 11,000 standards, 95 percent of which are compatible 
with ISO/IEC standards.  Turkey ranks third among European countries in 
terms of number of standards.  Around 900 of the 11,000 standards are 
obligatory, i.e., the manufacturers are forced by law to have their 
products certified by TSE.  The obligatory standards cover goods ranging 
from foodstuffs to medical equipment.  Importers must receive TSE's 
approval on imports of goods covered by obligatory standards.  About 130 
foreign companies which export their products to the Turkish market 
received TSE certificates for 250 products.  Some of these are Philips, 
Hitachi, Siemens and General Electric.  

Following Turkey's resolution to implement the ISO 9000 Quality 
Management Standards in 1988, the TSE prepared the compatible TS-ISO 
9000 Turkish Standards.  Since then 300 companies have applied and more 
than 20 companies have been issued TS-ISO 9000 certificates.

SPECIAL IMPORT PROVISIONS

There are a number of other products that can only be imported by 
specific government agencies or pre-approved organizations.  Alcohol can 
only be imported by the government monopoly enterprise, TEKEL.  
Cigarettes can only be imported by TEKEL and cigarette producers which 
are permitted by the government under a special decree (such as Philip 
Morris, R.J. Reynolds, British Tobacco, etc.).  X-ray film can only be 
imported by the Red Crescent Association (similar to the Red Cross).  
Precious metals and stones, excluding diamonds, can only be imported by 
commercial banks authorized by the Central Bank (Decree No. 93/4143, 
March 21, 1993).  

Import permission certificates must be obtained from the Directorate 
General of Curative Care Service in the Ministry of Health and 
Agriculture to import the following products: organic chemicals, 
especially those used to produce medicines and medical products; 
chemicals used in the cleaning and food industry; vaccines for both 
human beings and animals; live animals and plants; and grains, plant 
seeds, and hormones.  

Products requiring after-sales service such as motor vehicles, household 
electrical goods, office equipment, heaters, gas-fired burners, lathes, 
and wireless equipment require an import permission certificate from the 
Ministry of Industry and Commerce.  In order to obtain such a 
certificate, importers must guarantee that they will establish a spare-
parts network and maintenance capability in each of the seven geographic 
areas of Turkey.  

Telecommunications equipment such as automatic data processing machines, 
electrical apparatus for line telephony or telegraphy, and telephone 
answering machines need type-approval of the Turkish telecommunications 
authority (Turk Telekom), frequency-related products require the 
approval of the Directorate General of Wireless Affairs (TGM).  

Under the 1995 Import Regime, importers need to obtain a control 
certificate from the Ministry of Environment for materials which are 
detrimental to the environment, such as hard coal, lignite, petrocoke, 
arsenic, mercury, lead sulfides and carbonates, fluorocarbons, etc.


CHAPTER VII.  INVESTMENT CLIMATE

OPENNESS TO FOREIGN INVESTMENT

Turkey has been pursuing liberal and outward oriented economic policies 
since the 1980s.  Turkey views foreign direct investments as vital to 
its economic development and prosperity. Accordingly, Turkey has a very 
liberal investment regime in which foreign investments receive national 
treatment.  Almost all areas open to the Turkish private sector are also 
open to foreign participation and investment.   

The Undersecretariat of Treasury screens foreign investments, but we are 
unaware of any foreign investment proposals that Treasury has denied.  
Screening mechanisms are routine and non-discriminatory.  They do not 
serve as an impediment to investment, limit competition or protect 
domestic interests.  

All rights, exemptions and privileges granted to national capital and 
business are available under the same conditions to foreign capital and 
business working in the same field.  Foreign companies established in 
Turkey are considered Turkish businesses.  Apart from aviation, maritime 
transportation, insurance and broadcasting, where equity participation 
by foreign shareholders is limited to 49 percent, there are no major 
sectors in which foreign investors do not receive national treatment or 
MFN treatment.

The Turkish Government privatizes state economic enterprises through 
block sales, public offerings, and/or a combination of both.  Foreign 
investors can participate in privatization in all cases.  The Turkish 
Government has been making block sales to foreign firms since 1986 in 
the cement, iron and steel, appliance, automotive, telecommunication, 
and airline sectors.  Foreign investors receive national treatment in 
privatization programs, too.  They are allowed to participate in 
privatization programs from the initial stage onwards.  The government's 
privatization program for 1995 envisages the block sale of its stakes in 
the telecommunication, air transport, textile, iron and steel, 
petrochemicals, and oil sectors in the coming months.  The government is 
actively seeking the participation of international investors.

There is no discrimination against foreign investors at any stage of 
investment.  Turkey grants all rights, incentives, exemptions and 
privileges available to national capital and business to foreign 
business and capital.  U.S. and foreign firms can participate in 
government financed and/or subsidized research and development programs 
on a national treatment basis.  There are no discriminatory or 
excessively onerous visa, residence, or work requirements for foreigners 
locally employed.  There is no limitation placed on the assignment of 
expatriates as managers or technical staff.  

Foreign direct investment is viewed favorably by almost all non-
governmental groups.  However, some politicians and trade unions oppose 
block sales of state economic enterprises to foreigners.

Turkey provides investment incentives including subsidized credit 
facilities, and exemptions on corporate and value-added tax, customs 
fees, and duties.  Investment incentives are clearly specified in 
regulations.  The size of investment incentives depends upon the 
geographic location, sector, and value of the investment.  Investment 
incentives are greater in "priority" (less developed) regions and 
eligibility depends on a minimum value. 

The government of Turkey annually issues a list of investment 
incentives.  In order to take advantage of such incentives, a foreign 
investor must obtain a special "Incentive Certificate."  According to 
the current incentive regime, a minimum investment of at least $100,000 
is necessary for priority development regions and approximately $500,000 
for other regions. Incentives for 1995 are as follows:

-- Investment Allowance: This is a corporate tax exemption on foreign 
investments.  Rates of investment allowance range from 30% to 100% of 
the total fixed investment, depending on the location of the investment 
(100% for priority development regions and industrial belts, 30% for 
industrialized regions).

-- Customs Duties Exemptions: machinery and equipment are exempt from 
customs fees, taxes and duties except for a payment of between 5 and 25 
percent to the Mass Housing Fund.  The government is phasing out the 
Mass Housing Fund, and expects to fully abolish it by January 1, 1996.

-- Customs exemptions on raw materials (in accordance with the   
specifications mentioned in the regime).

-- Refund of VAT (Value-Added Tax) for locally purchased machinery (An 
additional 10% repayment for special sectors).

-- VAT deferral on imported machinery and equipment.

-- Land Allocation: Potential investors planning to invest in
priority development regions and industrial belts can apply to the 
General Directorate of Land and the related Industrial Zones for factory 
lots.

-- Exemption from letters of guarantee for imported capital equipment.  
Subsidies for letters of guarantee costs required in obtaining foreign 
credits are also available.

-- Exemption from building and construction taxes

-- Discounts on electricity charges

-- Soft loans for
  - Research and development investments
  - Environmental investments
  - Small and medium size enterprises

-- Special credits

In addition to the incentives mentioned above, investors can benefit 
from additional tax deferrals which are determined by the Ministry of 
Finance on an annual basis.  For 1995, corporations can defer up to 20% 
of their annual corporate tax amounts provided that this sum does not 
exceed the R&D expenditure of the corporation during the same year.

Turkey offers generous export incentives such as exemption from VAT and 
other taxes, duties and charges, customs duties exemption from imported 
raw materials for export items, energy incentives, credits through Turk 
EXIMBANK, pre-shipment export credits, revolving export credits and 
buyer's credits.

Turkey has a rather liberal foreign trade regime. There are no 
discriminatory or preferential export policies and import policies 
affecting foreign investors.  

CONVERSION AND TRANSFER POLICIES

Turkish law guarantees the free transfer of profits, fees and royalties, 
and repatriation of capital.  This guarantee is reflected in Turkey's 
bilateral investment treaty with the United States, which mandates 
unrestricted and prompt transfer in a freely usable currency at a legal 
market clearing rate for all funds related to an investment.  There is 
no difficulty in obtaining foreign exchange.  There are no limitations 
on the inflow or outflow of funds for remittances.



EXPROPRIATION AND COMPENSATION

Under the bilateral investment treaty with the United States (codifying 
existing Turkish law), expropriation can only occur in accordance with 
international law and due process.  Expropriations must be for public 
purpose and non-discriminatory.  Compensation must be reasonably prompt, 
adequate and effective.  Under the U.S.-Turkey bilateral investment 
treaty, investors have full access to the local court system and the 
ability to take the host government directly to third party 
international binding arbitration to settle investment disputes.  There 
is also a provision for state-to-state dispute settlement.

As a practical matter, the Turkish government occasionally expropriates 
private property for public works or for state enterprise industrial 
projects.  The Turkish government agency expropriating the property 
negotiates and proposes a purchase price.  If the owner of the property 
does not agree with the proposed price, he can go to court to challenge 
the expropriation or ask for more compensation.

DISPUTE SETTLEMENT

We are not aware of any major investment disputes, including outstanding 
expropriation/nationalization cases since 1990.  

The only investment dispute in recent memory involving a U.S. firm 
concerns a failed attempt by the municipal authorities in Iskenderun to 
expropriate facilities owned by MacAndrews and Forbes, a Camden, New 
Jersey firm.  The firm's beach front property had appreciated 
considerably since the facilities were established more than 100 years 
ago, but the authorities were willing to pay only a fraction of its real 
value.  A Turkish court decided in favor of MacAndrews and Forbes in 
1989.  

There are effective means for enforcing property and contractual rights 
in Turkey.  There is no government interference in the court system.  
Turkey has a written and consistently applied commercial and bankruptcy 
law.  

Turkey is a member of the International Center for the Settlement of 
Investment Disputes (ICSID) -- also known as the Washington Convention -
- and the New York Convention of 1958 on recognition and enforcement of 
foreign arbitrage awards.  Turkey ratified the convention of the 
Multinational Investment Guarantee Agency (MIGA) in 1987.  By 
withdrawing its general derogation to "codes of liberalization of 
capital movements and invisible transactions (OECD codes)" capital 
movement and invisible transactions have been liberalized to a great 
extent.

POLITICAL VIOLENCE

For the last ten years, urban and rural acts of terrorism throughout 
Turkey have caused injury and loss of life to government officials and 
civilians, including some foreign tourists.  Most incidents have 
occurred in eastern Turkey. In 1993, one terrorist group, the Kurdistan 
Workers' Party (PKK), began to target tourist sites and tourist-oriented 
facilities in western Turkey in an effort to inflict economic harm on 
Turkey by discouraging tourism.  Some terrorist groups have also 
targeted the personnel and property of organizations with official and 
commercial ties to the United States.  

PERFORMANCE REQUIREMENTS AND INCENTIVES

There are no performance requirements imposed as a condition for 
establishing, maintaining or expanding an investment.  There are, 
however, some requirements for access to tax and investment incentives.

There are no requirements that nationals own shares in investments by 
foreigners, that the share of foreign equity be reduced over time, or 
that the investor transfer technology on certain terms.  Investors need 
not purchase from local sources or export a certain percentage of 
output.  Access to foreign exchange has no relation to exports.  

There are no government-imposed conditions on permission to invest, 
including location in specific geographical areas, specific percentage 
of local content -- for goods or services -- or local equity 
substitution for imports, export requirements or targets, employment of 
host country nationals, technology transfer, or local financing.

The Turkish government does not request that investors disclose 
proprietary information, other than publicly available information, as 
part of the regulatory approval process.  Enterprises with foreign 
capital must send their activity report, submitted to the general 
assembly of shareholders, auditor's report and balance sheets to the 
GDFI every year by May. 

RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT

Foreign and domestic private entities have the right to freely establish 
and own business enterprises and engage in all forms of remunerative 
activity except in sectors like aviation, maritime transportation, 
insurance and broadcasting where the equity participation ratio of 
foreign share holders is limited to 49 percent of an entity (in 
broadcasting the limit is 20 percent).  Beyond these areas, private 
entities may freely establish, acquire, and dispose of interests in 
business enterprises and foreign participation is permitted up to 100%.  

Competitive equality is the standard applied to private enterprises in 
competition with public enterprises with respect to access to markets, 
credit, and other business operations.  Turkey is currently in the 
process of adopting the European Union's competition policy.

PROTECTION OF PROPERTY RIGHTS

Turkey's legal system adequately protects most property rights of 
foreign investors, without discrimination.  Protection of intellectual 
property (IP) rights, however, does not meet western standards.

The United States has worked closely with Turkey for several years to 
improve IP legislation and enforcement.  Because of Turkey's inadequate 
protection for IP rights, since 1992 the United States has listed Turkey 
on the "priority watch list" of countries which fail to protect American 
firms' IP rights, as specified under the "Special 301" provision of the 
1988 Trade Act.  The United States, responding to a petition from U.S. 
industry, is also reviewing Turkey's continued eligibility for GSP 
(Generalized System of Preferences) treatment in light of its failure to 
adequately protect IP.

There has been significant progress on the legislative front in early 
1995 (see below).  This is being driven primarily by Turkey's desire to 
enter into a customs union with the European Union from January 1, 1996.  
The agreement with the EU requires Turkey to meet EU standards for IP 
protection, which are essentially the same as the standards agreed to in 
the Uruguay Round .  Turkey is a member of the World Trade Organization 
and a party to the TRIPS (Trade-related aspects of intellectual 
property) Agreement.  Turkey is also a member of the World Intellectual 
Property Organization.  In mid-1995, attempting to remain on schedule 
for customs union accession, the Turkish Government passed new 
legislation on copyrights and patents.  This new legislation, while 
offering improvements, does not fully answer a number of key U.S. 
concerns, e.g., with protection for pre-existing works, sanctions 
against violators, or pharmaceuticals protection. 

It remains to be seen how effective the new laws will be in improving 
Turkey's dismal enforcement record.  The government intends to establish 
a number of special courts to hear IP cases tried under the new laws.  
However, many observers doubt the ability of Turkey's justice system -- 
already seriously overburdened -- to create these new courts and provide 
the technical training required.
 
Copyrights:  In June 1995, capping years of discussion, Turkey's 
Parliament approved legislation amending Turkey's 1951 copyright law 
("Intellectual and Artistic Works Law").  The amended law -- which came 
into effect on June 12 -- significantly improves protection for books, 
videos, sound recording, computer programs, and other copyright-
protected media.  Fines are also substantially increased.  When it is 
fully implemented later this year, the new law should have a significant 
impact on the current widespread, unauthorized copying and sale of U.S.-
origin books, tapes and software.

The 1987 Cinema, Video, and Music Works law provided greater protection 
for some of these artistic works through a registration system.  It has 
helped reduce piracy, but enforcement has been problematic and penalties 
are not harsh enough to act as a deterrent.  The Turkish Government has 
submitted a revised version of the law to the National Assembly that 
would increase penalties, but as of June 1995 the Assembly had not 
passed it.   Turkey is a member of the Berne Copyright Convention (1948 
Brussels text); a bill on Turkey's accession to the 1971 text is now in 
Parliament.

Patents:  In June 1995, the Turkish Government enacted a new patent law.  
After 10 years of discussion, and two years of debate in Parliament, the 
Prime Minister now has the power to issue the new law by decree, as part 
of a package of legislation required for the customs union.  However, 
the patent bill is weakened by the absence of pipeline protection and 
its broad compulsory licensing provisions.  The agreement with the EU 
allows Turkey to postpone introduction of patent protection for 
pharmaceuticals until 1999.  Turkey is a member of the Paris Convention 
for the Protection of Industrial Property.

Trademarks:  A trademark law has been drafted and is included in the 
package of bills which the Prime Minister can enact by decree.  
Counterfeiting of foreign trademarked products is currently widespread.

Trade secrets:  There is currently no Turkish law specifically 
protecting trade secrets.


REGULATORY SYSTEM: LAWS AND PROCEDURES

The Turkish Government has adopted a transparent policy and effective 
laws to foster competition and normally follows competitive bidding 
procedures.  Occasionally, the Turkish government agencies make direct 
orders to firms or state economic enterprises if the quantity is small.  
Some tenders are only open to domestic firms, while large tenders which 
require foreign finance, technology and service imports are made 
internationally.  A law on the prevention of unfair competition came 
into force in 1989 which protects industry against unfair competition 
due to dumped or subsidized imports.  Turkish foreign investment 
legislation does not allow companies special privileges or to become 
monopolies.  The Turkish government will be adopting the European 
Union's public procurement procedures by January 1, 1996 if the Customs 
Union with EU is successfully concluded.
 
There are tax, labor, health and safety, and other laws and policies to 
avoid distortions or impediments to the efficient mobilization and 
allocation of investment.  

Bureaucratic procedures are, in general, streamlined and transparent.  
The Turkish government has substantially reformed these laws since 1980.  
In a draft decree that has already been submitted to the Council of 
Ministers, the Turkish government is aiming to remove all bureaucratic 
barriers for foreign capital entries.   The 1992 foreign direct 
investment law is currently being aligned in conformity with the most 
liberal regulations of OECD countries.  Under the new decree, the 
approval of the Cabinet will not be required for foreign capital entries 
over $150 million as was the case before.  Foreign companies will not be 
required to hold their capital in Turkey in local currency.  Companies 
will be allowed to place their capital in foreign currency deposit 
accounts.  If a local company sets up a partnership with a foreign 
company it will only inform the Treasury of the deal rather than 
obtaining preliminary approval of the latter.  

To avoid the risk of "double" taxation on U.S. firms (in both the United 
States and Turkey), a tax treaty has been initialed by the two 
governments.   The treaty for the avoidance of double taxation is 
expected to be signed in coming months.  Numerous double taxation 
treaties are also in effect with other countries. 

Turkish social law is also transparent. All employees must be insured by 
the government's social security organization.  Both employees and 
employers are subject to social security premiums in Turkey (except 
expatriates employed by a non-resident employer for a limited duration 
on condition that they are insured abroad).  

Under Turkish labor law, most workers have the right to associate freely 
and form representative unions.  Turkish government bars military 
personnel, teachers, police and civil servants (broadly defined as 
anyone directly employed by central government ministries and certain 
state economic enterprise employees) from organizing unions, but 
constitutional amendments granting all categories of employees the right 
to form unions and expanding the right to strike were submitted to 
Parliament in late 1992 (refer to section D below). An arbitration board 
settles disputes in cases where strikes are forbidden. 

The Turkish Government has established a "one stop" agency, the General 
Directorate of Foreign Investment (GDFI) within the Undersecretariat of 
Foreign Trade, to deal with issues related to foreign investments.  
Sometimes it can be time consuming to get things done, depending on the 
type of investment.  Turkish government assistance is basically limited 
to the point at which a company is formed--then the firm is treated as a 
local company. Companies with foreign partners/parents often do not feel 
as free to operate in Turkey's "liberal" environment as do wholly local 
firms. 

Turkey has BOT (Build-Operate-Transfer) legislation which allows foreign 
firms to participate in some of the state investment projects which 
require advanced technology and/or large amounts of financing on a 
Build-Operate-Transfer basis.  In BOT projects, the government 
guarantees to buy products produced at a certain price over a certain 
period.  Projects include construction of bridges, dams, tunnels, 
motorways, railways, sea ports and airports for civilian usage, 
irrigation, potable-water and sewerage systems, waste water treatment 
plants, factories, power plants, energy transmission, mining and 
telecommunications. International companies have demonstrated 
significant interest in power plant projects based on the BOT model.

BILATERAL INVESTMENT AGREEMENTS

Since 1985, Turkey has been negotiating and signing agreements for 
reciprocal promotion and protection of investments with various 
countries.  As of May 1994, Turkey has signed or initiated bilateral 
investment protection and promotion agreements with 31 countries.  
Eleven of these agreements are now in force with the United States, 
Germany, Holland, Belgium-Luxembourg, Denmark, Austria, Switzerland, 
Japan, Tunisia, Kuwait, and Bangladesh.  Negotiations with a number of 
other countries are continuing.  Turkey's bilateral investment treaty 
with the United States came into effect on May 18, 1990.  Avoidance of 
double taxation agreements have been signed with 15 countries.  A tax 
treaty between the United States and Turkey has also been initialed and 
expected to be signed in the near future.

OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS

The Overseas Private Investment Corporation (OPIC) offers its full range 
of programs in Turkey, including political risk insurance for U.S. 
investors under its bilateral agreement between the U.S. and Turkey.  
OPIC is also active in financing private investment projects implemented 
by U.S. investors in Turkey.  In 1987, Turkey became a member of the 
Multinational Investment Guarantee Agency (MIGA).

LABOR

The Turkish labor force numbers around 21 million persons, with 
approximately 46 percent employed in agriculture.  With an official 
national unemployment rate of 8.3 percent (but probably significantly 
higher, especially in urban areas, due to discouraged workers leaving 
the labor force), and the minimum school-leaving age raised from 11 to 
14 only in the past two years, Turkey has an abundance of unskilled and 
semi-skilled labor.  However, there is a shortage of qualified workers 
for highly automated, high-tech industries.  Individual high-tech firms, 
both local and foreign-owned, have generally conducted their own 
training programs for such job categories.  Vocational training schools 
for some commercial and industrial skills exist in Turkey at the high 
school level.  Traditional apprenticeship programs--formal and informal-
-are also common.  Turkey's labor force has a reputation for being 
hardworking, productive and very dependable.  Approximately 50% of the 
country's 60 million inhabitants are under age of 21.

Labor-management relations are generally good.  Employers are obliged by 
law to negotiate in good faith with unions that have been certified as 
bargaining agents.  Strikes are usually of short duration and almost 
always peaceful.  The incidence of strikes decreased markedly in 1994 
(27 percent lower than in 1993).  Since the 1980 military coup Turkey 
has faced criticism in the International Labor Organization (ILO), 
particularly for shortcomings in enforcement of ILO convention 98 (right 
to organize and collective bargaining).  Current labor law prohibits 
"civil servants" (defined broadly as all employees of the central 
government ministries, including teachers) from forming legally-
recognized trade unions.  The current government is seeking approval of 
a constitutional amendment to permit civil servants the legal right to 
unionize.  At issue is whether and to what extent civil servants will 
have the right to strike and collective bargaining.  In 1992, the 
Turkish National Assembly ratified seven ILO Conventions, including no. 
87 (Freedom of Association) and no. 151 (Right to Organize in the Public 
Sector).  The government accepted ILO Convention no. 158 (Termination of 
Employment at the Initiation of the Employer) in 1994.

FOREIGN TRADE ZONES/FREE PORTS

The infrastructure for industrial operations has improved considerably, 
especially in the western part of the country. Presently, there are five 
Free Trade Zones (FTZ)--Mersin, Antalya, Aegean, Istanbul and Trabzon--
in Turkey.  Another six FTZs are under construction.  There are also 20 
Organized Industrial Zones throughout the country which offer attractive 
conditions for establishing industrial operations.  

Free trade zones are completely tax free and foreign-owned firms have 
the same investment opportunities and treatment as host country 
entities.  Trade between FTZ's and Turkey is treated as foreign trade.  
The goods brought into the free zones can be sold to Turkey with or 
without processing.   There are no limitations on the proportion of 
foreign capital participation within the FTZ.  

Foreign-owned firms can benefit from a number of incentives such as tax 
(including income tax on salaries of persons working within the FTZ), 
duties and toll exemptions and export treatment of Turkish origin 
inputs, etc., both at the investment and production stages.  

For further information please contact: General Directorate of Free 
Trade Zones, Undersecretariat for Foreign Trade, Inonu Bulvari, Emek, 
Ankara.  

Tel: (90) 312 - 212 8909, fax: (90) 312 - 212 89 06

CAPITAL OUTFLOW POLICY

Turkish citizens wishing to establish a company, a branch office, or 
take part in a joint venture may freely transfer capital abroad below $5 
million without permission.  Export of capital above $5 million must be 
approved by the Undersecretariat of Treasury.  Applications for transfer 
of over $150 million must be submitted to the Council of Ministers after 
preliminary consideration by the Treasury.  In June 1995, the Council of 
Ministers was examining a new Foreign Capital Decree which would almost 
completely abolish controls
 on capital flows.  

Turkish foreign direct investments in other countries as of December 31, 
1993 (please note that the figures may not be reliable because most 
Turkish businessmen tend to move money in amounts less than $5 million):


Capital Outflow (USD millions)

COUNTRY OF                               CUMULATIVE
DESTINATION                1991  1992  1993  TOTAL
UK                          6.5   N/A  7.41   38.1
GERMANY                    33.0  36.3  10.3  124.1  
CIS.                        0.3  27.7  76.0  113.5
UNITED STATES               0.6   3.1   3.2   87.5  
LUXEMBOURG                  N/A  10.3   5.0   40.8
NETHERLANDS                 N/A  10.7  10.7   29.9
SWITZERLAND                 N/A   2.0   5.3   26.2
AUSTRIA                     N/A   N/A   1.1   20.3
FRANCE                      3.8   0.6   3.8   19.8
OTHERS (1)                  3.7   4.3   9.9   17.7
TOTAL                      47.9  94.9  132.7  659.9(2)

(1): Includes capital outflow to free trade zones as well as to all 
other countries.
(2): Total (cumulative) capital outflow from turkey. 
Source: General Directorate of Banking and Foreign Exchange, UTFT.

Outward FDI as a Percentage of Turkish GDP


YEAR  OUTWARD FDI     OUTWARD FDI/GDP
  (USD millions)    (Percent)

TO 1985  212.2    ---
1990  172.50.11    0.0013
1991  47.90.03    0.0003
1992  94.90.06    0.0007
1993  132.70.08    0.0010

Source: General Directorate of Banking and Foreign Exchange, Treasury, 
and State Institute of Statistics (SIS).

FOREIGN DIRECT INVESTMENT STATISTICS

According to statistics provided by the GDFI, as of May 31, 1995, 2948 
foreign firms had invested and were operating in Turkey.  Total 
authorized capital was $14.7 billion and actual inflows reached $7.8 
billion (as of March 31, 1995).  European Union (EU) countries accounted 
for about 61 percent of cumulative foreign investment, OECD countries 
accounted for 91 percent.  France and the Netherlands are the top 
sources of foreign investment, followed by the United States and 
Germany.  About 57 percent of foreign investment was in manufacturing, 
41 percent in services, 1.2 percent in agriculture and 0.75 percent in 
mining.  Of the foregoing, some of the larger sub-sectors include 
financial services (5.66 percent), hotel services (5.58 percent), 
banking (9.49 percent), vehicle production (9.29 percent), food 
processing (8.58 percent), tobacco products (7.47 percent), construction 
(5.58), industrial chemicals, and electronics (3.86 percent).  

Total Cumulative Foreign Direct Investment in Turkey by Country of 
Origin as of May 31, 1995

COUNTRY  NUMBER OF FIRMS    PERCENTAGE OF
  TOTAL    FOREIGN CAPITAL
NETHERLANDS  147    20.62
FRANCE  162    14.94
UNITED STATES  219    11.08
GERMANY  524    10.96
SWITZERLAND  152    7.82
JAPAN  40    6.62
ITALY  117     5.02
UNITED KINGDOM          206     4.67
CANADA   14      3.05
LUXEMBOURG   26       2.77
SAUDI ARABIA  64     2.08
OTHERS  1,277    10.39   
TOTAL  2,948    100.00

Source:  General Directorate of Foreign Investment, (GDFI), UTFT. 



Estimated FDI Stock as of Percentage of Turkish GDP by Country, as of 
May 1995


COUNTRY       FDI STOCK/GDP

NETHERLANDS  0.0022
FRANCE  0.0017
UNITED STATES  0.0012
GERMANY  0.0012
SWITZERLAND  0.0008
JAPAN  0.0007
UNITED KINGDOM  0.0005
ITALY  0.0005
CANADA  0.0003
SAUDI ARABIA  0.0002
SOURCE:  General Directorate of Foreign Investment (GDFI), and the State 
Institute of Statistics (SIS).



Foreign Direct Investment by Years (Million, USD)

FDI PERMISSIONS      REALIZATIONS  ACTUAL
YEAR  CUMULATIVE  ANNUAL  ANNUAL  NO OF FIRMS
TO 1988   3,229  
1989   4,791  1,512  855   1,525
1990   6,652  1,861  1,005   1,856
1991   8,619  1,967  1,041   2,123
1992  10,439  1,820  1,242   2,330
1993  12,710  2,271  1,016   2,554
1994  14,195  1,485  830  2,830
1994  (A) 14,742    (A) 777    (B) 211   2,948

(A): As of end of May, 1995
(B): As of end of March, 1995

Source: General Directorate of Foreign Investment (GDFI), and the State 
Planning Organization (SPO)



Annual FDI Flow as a Percentage of Turkish GDP

  FDI FLOW  FDI   
YEAR  (USD, Million)  (PCT)

Up to 1988       3,229    ----
1989  855    0.0065
1990  1,005   0.0077
1991  1,041  0.0080
1992  1,242  0.0095
1993  1,016   0.0078
1994  830   0.0063
1995  211(A)  0.0016

(A): As of end of May, 1995
Source: General Directorate of Foreign Investment (GDFI), and the State 
Planning Organization (SPO).


MAJOR FOREIGN INVESTORS

To date, many well-known multinational companies have invested in Turkey 
including: American Express, Citibank, Chase Manhattan Bank, Chemical 
Bank, Bankers' Trust, Banco Di Roma, Dresdner Bank, First National Bank 
of Boston, Irving Trust, P.B. International Bank, Saudi American Bank, 
AEG, Alcatel, Bayer, Bell Telephone, BMC, Bosch, BP, Bridgestone, 
Cargill, Castrol, Ciba-Geigy, Ciment Francais, Club Mediterrane, Coca 
Cola, Colgate-Palmolive, Conrad, Daimler-Benz, Du Pont De Nemours, Fiat, 
FMC, General Electric, General Motors, Henkel, ITT, Ford Motor Co., 
Lockheed, Gillette, Goodyear, Hilton International, Hoechst, Honda, 
Toyota, Mazda, International Harvester, Kumagai Gumi, Man, Mannesman, 
McDonald's, Nestle, Mitsui, Mobil, Nabisco, Philips, Philip Morris, 
Northern Telecom, Pepsi, Pfizer, Pirelli, Procter and Gamble, Ralston 
Purina, Renault, RJR Nabisco, Hoffman-Laroche, Sandoz, Shell, Siemens, 
Singer, Thyssen, Tuborg, Unilever, Uniroyal, Volvo and Voyager.  


CHAPTER VIII.  TRADE AND PROJECT FINANCING

BRIEF DESCRIPTION OF BANKING SYSTEM

One of the main results of the economic stabilization and financial 
liberalization measures undertaken by former President Turgut Ozal in 
the 1980s was the complete restructuring of the Turkish banking system 
along Western lines.  Even though still dominated by a few large state 
and commercial banks--some 75 percent of all assets are held by six or 
seven banks--and suffering from a lack of transparent accounting 
practices and credit-rating agencies, the Turkish banking system offers 
the same services found in Western Europe in terms of project finance, 
letters of credit, and correspondent relationships.  There are around 68 
banks in Turkey.  Twelve of these are investment and development banks, 
and 56 are commercial banks.  Banks are permitted to engage in regular 
banking, securities brokering, and other businesses.  U.S. and U.S.-
affiliated banks in Turkey include:  Bank of New York, Banker's Trust, 
Chase Manhattan, Chemical Bank, Citibank, and Saudi American Bank.

The Istanbul Stock Exchange, formed in 1986, is becoming one of the 
major players in the capital market.  The Central Bank of the Republic 
of Turkey is located in Ankara and is responsible for the integrity of 
the banking system.  In 1994, the Central Bank of Turkey became an 
autonomous body.

The Central Bank of the Turkish Republic supervises bank activities in 
order to guarantee that they meet liquidity requirements and operate in 
a responsible fashion.  While the Central Bank's Bank Supervision 
Division acts as the government's supervisory authority, the 
Undersecretariat of Treasury is responsible for the enforcement of 
banking laws.  Treasury's Banking and Exchange General Directorate 
conducts criminal investigations against banks and is the government 
agency which determines punitive actions taken against institutions 
violating banking or securities laws.  Treasury also determines the 
disposition of insolvent banks. 

FOREIGN-EXCHANGE CONTROLS AFFECTING TRADING

There are no known foreign-exchange limits placed on importers by the 
Government of Turkey, and there are no restrictions on the transfer of 
funds in or out of the country.  Although the Turkish Lira (TL) is fully 
convertible, most international transactions are denominated in U.S. 
dollars or German marks due to these currencies' universal acceptance 
and the continuing monetary uncertainty caused by Turkey's high 
inflation rate.  Banks are allowed to deal in foreign exchange and to 
borrow and lend in foreign currencies.  Foreign exchange is freely 
traded and widely available.  Foreign investors are free to convert and 
repatriate their Turkish Lira profits.

GENERAL FINANCING AVAILABILITY

Traditionally, Turkish corporations have satisfied most of their 
financing requirements through the banking industry.  
Corporation/banking relationships are close.  Locally, commercial banks 
account for about 80 percent of the credits outstanding in the Turkish 
financial system.  However, given the continuing gap between Turkey's 
extensive needs and its limited internally-generated resources, external 
financing of public and private project investment will be a crucial 
factor in this and coming years.  Because of high inflation and high 
public-spending requirement, the cost of local currency funding is very 
high.  Exporters are advised to provide financing for their exports.  In 
addition to short- and medium-term credits available from commercial 
banks in local and foreign currencies, lower-cost TL credits are also 
available from Turkish Eximbank.

HOW TO FINANCE EXPORTS, METHODS OF PAYMENT

Letters of credit (LCs) are traditional import instruments for private-
sector transactions.  LCs are always irrevocable and are usually 
confirmed.  As Turkish importers develop long-term contacts and prove 
their credit-worthiness, suppliers are usually willing to accept cash 
against documents and cash against goods shipments.  Deferred payment 
schedules are not common except in cases of large transactions where 
supplier financing plays a role.

Sales to Turkey are influenced by the availability and cost of supplier 
credits.  Turkey's international credit rating, which had dropped 
because of the 1994 recession, is expected to increase in 1995.  
Suppliers should consider unconventional project financing packages 
(e.g., forfeiting, factoring, and utilization of third-country export 
credits) when bidding on major government infrastructure projects.  
Exporters should be flexible and try to accommodate customers' needs, 
building any additional associated cost into the offer price.  A stand-
by letter of credit was approved between Turkey and the IMF in 1994 and 
further extended in 1995.  Credit availability is expected to improve 
hereafter.

Firms bidding on GOT contracts should pay careful attention to the way 
proposals are prepared and should strictly follow the administrative 
specifications; financing costs and foreign exchange rate risks, 
wherever applicable, should be factored into the bid price.  Bids which 
do not comply with administrative specifications (which include 
financial aspects) are rejected most of the time.  Generally, validity 
of a proposal is required to be 3 to 6 months from the bid date.  
Government tenders often involve bid and performance bonds.  Bid bonds 
requested are normally equivalent to 3 percent of the value of the 
tender, while performance bonds are usually equivalent to 6 percent of 
the contract value.  The bonds should not have an expiration date.  The 
GOT only calls these bonds in cases of extreme bad faith.  No case is 
known to USFCS/Turkey, although in one current dispute, the Ministry of 
Interior has thus far refused to return a bond.  All bonds have to be 
counter-guaranteed by a Turkish national bank.

There are a large number of leasing companies in Turkey.  Most of them 
are owned by Turkish banks.  They finance purchases of expensive capital 
goods such as aircraft, auto fleets, or special equipment.  Financial 
leasing used to account for only 1 to 2 percent of capital expenditures 
in Turkey vs. 20 percent in developed countries.  Because of funding 
difficulties, leasing activities decreased substantially during the 
first half of 1994.  The terms of leasing are usually four years, with a 
balloon payment at the end.  Turkish leasing companies are eager to work 
with U.S. counterparts.

Turkish factoring companies (again, usually offshoots of banks) 
generally belong to the International Factors Group based in Belgium.  
As with leasing companies, all factoring and forfeiting companies are 
having funding difficulties.  Both factoring and forfeiting maximize 
cash flow, reduce transaction risks, and may enhance competitiveness by 
offering flexible payment terms to the buyer.  All U.S. banks active in 
Turkey know and deal with at least one of the major leasing and 
factoring companies.
  

TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE

The Export-Import Bank of the United States (Eximbank) is wide open for 
business in Turkey and offers a variety of credit facilities to U.S. 
firms exporting to Turkey.  The U.S. Trade and Development Agency (TDA) 
is active in financing pre-feasibility and feasibility studies and pre-
design work for major government projects, while the Overseas Private 
Investment Corporation (OPIC) insures and provides investment credit 
financing to many U.S investments in Turkey.  U.S. firms may also 
compete for contracts financed by the World Bank.  Most major government 
tenders still require suppliers' credits.

In December 1993, U.S. Eximbank offered to increase its local exposure 
by as much as $5 billion.  A Treasury guarantee is necessary to obtain 
Eximbank project financing.  Eximbank has signed a protocol with the 
Turkish Eximbank in May 1995 to develop export credit facilities for the 
purchase of U.S. and Turkish goods for the joint-venture projects in the 
Central Asia.



PROJECT FINANCING AVAILABLE AND TYPES OF PROJECTS SUPPORTED

Turkey offers numerous major project opportunities in 
telecommunications, energy, transportation, and building of 
infrastructure projects such as dams, airports, harbors, roads, and 
water and sewerage systems.  Supplier financing is the key to winning 
these large projects.  U.S. Eximbank established a project financing 
office in 1994 to provide financing on project basis.  Traditionally, 
U.S. Eximbank financing, along with OPIC and TDA programs, are available 
to U.S. suppliers.  International financing institutions such as 
International Bank for Reconstruction and Development (IBRD) and 
Overseas Economic Cooperation Fund of Japan (OECF) have also been 
providing large amounts of funds for major projects in Turkey.  In 1994, 
IBRD approved $750 million financing of four environmental projects in 
Turkey.  Other credits from IBRD are available for funding of health, 
education, and other infrastructure projects.  OECF in November 1993 has 
approved a yen 52,473 million (about $485 million) loan to the Turkish 
Government for construction of the Melen project--a potable water 
project, the value of the first construction stage of which is $1.2 
billion.

Offsets/Countertrade.  Large government procurement/coproduction tenders 
(especially in the defense sector) frequently involve language which 
stipulates that the bidder offer a countertrade proposal.  Countertrade 
proposals often play an important role in the decision to award a large 
contract.  Direct offsets are preferred over indirect offsets.  While 
countertrade requirements have not proven to be a serious obstacle in 
the past, they should be factored into pricing.  A guidebook published 
on offset requirements is available from Turkey's Undersecretariat for 
Defense Industries.

LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS

Almost every Turkish bank, regardless of size, has correspondent 
relations with American banks.  Some of these are:

Akbank T.A.S.
Etibank Bankacilik A.O.
Kocbank A.S.
Pamukbank T.A.S.
Sekerbank T.A.S.
Turkiye Cumhuriyeti Ziraat Bankasi
Turkiye Dis Ticaret Bankasi A.S.
Turkiye Emlak Bankasi
Turkiye Garanti Bankasi A.S.
Turkiye Halk Bankasi
Turkiye Is Bankasi A.S.
Vakiflar Bankasi T.A.O.
Yapi ve Kredi Bankasi A.S.

CHAPTER IX.  BUSINESS TRAVEL

BUSINESS CUSTOMS

The Turkish people feel close to their traditions and culture.  However, 
reflecting ties with western countries, Turkish people in major cities 
have adopted a western way of life.  A foreigner visiting any one of the 
large cities in Turkey will find himself in an atmosphere similar to 
that of a contemporary western city.  There are no local customs, beyond 
the bounds of normal courtesy, that a visiting businessman should feel 
compelled to observe.  In general, a personal relationship is an 
important basis for a successful business relationship in Turkey.  It is 
usually important to allow time for friendly conversation before 
commencing with a business agenda.  Business cards are almost always 
exchanged, and visitors are usually offered a glass of tea or Turkish 
coffee.




TRAVEL ADVISORY AND VISAS

New visa regulations entered into force on October 1, 1994 for U.S. 
citizens visiting Turkey.  U.S. citizens are required to obtain visas 
before entering Turkey.  

U.S. citizens traveling on standard passports may obtain their visas 
either from Turkish Consular Offices abroad, or at the border crossing 
point--for any stay up to three months.  For visits of longer duration, 
or for those intending to study or to obtain employment in Turkey, a 
visa must be obtained in advance.  A fee of $20.00 will be collected, in 
reciprocity of U.S. practice, notwithstanding the type of visa issued.  

U.S. citizens holding diplomatic or official passports must obtain their 
visas from the Turkish Embassy (not from a Consulate), before their 
departure for Turkey.  It is recommended that each passport holder check 
with the Turkish Embassy concerning the details on Turkish visa 
requirements.  Plenty of time should be allowed for the issuance of a 
Turkish visa.  Occassionally, applications are referred to Ankara before 
local visa issuance.  Passport holders should also ensure that their 
passports are actually stamped on arrival to indicate the date of entry 
at the police and passport check counter.  

There is little crime against visitors (generally less than in the 
United States) in major cities like Istanbul, although there have been 
reports of pickpocketing, purse snatching and mugging.  Visitors are 
advised to avoid accompanying unknown persons to bars and night clubs 
which may seriously overcharge.  Travel to eastern Turkey except for the 
Black Sea Coast can be dangerous.  Terrorist acts by PKK (Kurdish 
terrorist groups) continue in most of the eastern provinces.  The 
terrorist attacks include civilian targets.  Travel in the eastern 
provinces should be restricted after nightfall to city centers.  During 
the last few years, there have been some terrorist incidents in major 
cities as well.  Unauthorized purchase or removal from Turkey of 
antiquities or other important cultural artifacts is strictly forbidden.  
U.S. visitors may obtain updated information on travel and security in 
Turkey from the U.S. Embassy in Ankara or Consulates in Istanbul and 
Adana.

TURKISH HOLIDAYS FOR 1996

January 1 (Monday)  : New Year's Day
February 19-22   : Sugar Holiday (From 13:00 on 2/19, Monday)
April 23 (Tuesday)  : National Sovereignty and Children's Day)
April 27-May 1   : Sacrifice Holiday (From 13:00 on 4/27, Saturday)
May 19 (Sunday)   : Ataturk Memorial, Youth, and Sports Day
August 30 (Sunday)  : Zafer Bayrami (Victory Day)
October 28-29     : Turkish Independence Day (From 13:00 on 10/28, 
Monday)

BUSINESS INFRASTRUCTURE

Transportation.  Major European airlines as well as Delta have frequent 
flights to Turkey.  Turkish Airlines (THY) flies to many cities in 
Europe, New York, the former Soviet Union, the Middle East, and the Far 
East.  THY has a number of flights daily between Ankara and Istanbul.  
THY also has daily flights to other cities in Turkey.  Rail 
transportation is also available between most of the major cities.  
Public transportation is available in the cities.  However, businessmen 
are advised to use taxis.  Taxi fares are low.

Language.  The official language spoken by more than 90 percent of the 
population is Turkish.  Most educated Turks have a command of at least 
one foreign language, with sufficient fluency to carry out business 
transactions.  Most company executives were educated in western 
countries.  English is the dominant language for international business.  
Other frequently spoken languages are German and French.

Communication.  The telephone system in Turkey's major cities is good.  
Faxes are widely used in international business.

Lodging.  Medium to luxury-type hotels, including international hotels 
such as the Hilton, Sheraton, Hyatt, Holiday Inn, Conrad, and Swiss 
Hotel, are available in major cities.  Apartment rents in Istanbul are 
expensive.  Rentals in Ankara and Izmir are more reasonable.  The rental 
of a good quality apartment in a popular area of a city is usually set 
in a foreign currency, and often 6 months to one year's rent is expected 
in advance.

Health.  There is no family doctor system in Turkey.  In the event of 
illness it is customary to go directly to a hospital or to a private 
specialist.  There are several good private medical facilities in 
Istanbul and Ankara.  Anyone coming to Turkey should have comprehensive 
medical insurance.

Vaccines.  Vaccines necessary for Turkey are all childhood 
immunizations, Typhoid, Hepatitis B, Hepatitis A (or Immune Globulin as 
an alternative).  Visitors who will visit rural areas, or go on hiking, 
or trekking trips in the country may wish to get rabies vaccinations, 
although this is not required.

Food.  Turkish cuisine is characterized by the freshness of its 
ingredients and most American business travelers have no trouble finding 
a good meal.  All major hotels have at least one restaurant serving 
continental cuisine.  Several European and ethnic restaurants are also 
available in major cities.  Prices at these places are usually moderate-
to-expensive.  Good food is available not only at expensive restaurants 
but also moderately priced establishments.  One also has the choice of 
fast food restaurants such as McDonald's, Wendy's, Kentucky Fried 
Chicken, Burger King, and their Turkish equivalents such as Kebap 49.  A 
variety of fresh fruits and vegetables is found throughout the year.

CHAPTER X.  APPENDICES

APPENDIX A:  COUNTRY DATA

1. PROFILE

-Population:  65 million (est.)

-Population Growth Rate:  2.2 percent

-Religion:  Moslem (99 percent)

-Government System:  Parliamentary Democracy

-Language:  Turkish

-Work week:  Monday through Friday



APPENDIX B:  DOMESTIC ECONOMY 


                               1994    1995    1996    Source
- GNP current (USD bil)        131      149    157    A/B/I

- GNP growth rate (%)         -6.0      3.1    5.5    A/B  

- GNP per capita (USD)       2,192    2,260    2,384    A/B

- Government spending
  as percent of GNP          27.9      26.5      28.0    A/B
  
- Inflation (%)             125.5      80.0      55    A/B

- Unemployment (%)            8.3       8.0      7.6    A/B

- Foreign exchange reserves  16.5      19.0     17.5    C/B
  (USD bil)

- Average exchange    
  rate/$                   29,700    46,400    67,000    D/B/I  

- Foreign debt (USD mil)   65,601    62,700    64,500    C/E/B

- Debt service ratio           30        34    30    C/E/B/I

- U.S. Economic/Military
  Assistance (US FY) 
  (USD mil)                   524       410    378        B  


  
APPENDIX C:  TRADE (USD Millions)*
                                  1994    1995    1996    Source
- Total country exports         18,106    20,000    22,000    D/B

- Total country imports         23,270    27,000    30,000    D/B

- Exports to U.S.                1,520    1,680    1,848    D/B

- Imports from U.S.              2,430    2,830    2,650    D/B

*Turkish trade statistics used in this section.


APPENDIX D:  INVESTMENT STATISTICS
                             1993    1994    1995est.    Source
Total foreign direct        5,550    7,572    9,500    G/D/B
investment (USD millions,
cumulative) inflows

U.S. Direct investment       705    874    1,023    H
(USD millions and percent    (13)    (12)    (12)
share of total foreign 
investment, cumulative)


Sources:
A) State Institute of Statistics
B) U.S. Embassy Ankara estimate 
C) Undersecretariat of Treasury
D) State Planning Organization 
E) Official Gazette, GOT 1994 Program
F) USDOC, Bureau of the Census
G) General Directorate of Foreign Investment
H) USDOC, Bureau of Economic Analysis
I) Central Bank of the Republic of Turkey



APPENDIX E:  U.S. AND COUNTRY CONTACTS


TURKISH GOVERNMENT CONTACTS


Trade/Economy

Devlet Planlama Teskilati              Tel: (90-312) 230 8720
(State Planning Organization) (SPO)    Fax: (90-312) 231 3498
Iktisadi Planlama Genel Mudurlugu
(Public Sector Investments Planning Dept.)
Necatibey Caddesi No. 108
06100 Bakanliklar, Ankara, Turkey
(Develops and administers the state's investment programs and 
priorities.)

Hazine Mustesarligi  Tel: (90-312) 212 8800
Yabanci Sermaye Genel Mudurlugu  Fax: (90-312) 212 8778
(Undersecretariat of Treasury
General Directorate of Foreign Investment)
Eskisehir Yolu, Inonu Bulvari
06510 Emek, Ankara, Turkey
(Information on foreign investment opportunities, procedures and 
incentives.)
 
Dis Ticaret Mustesarligi  Tel: (90-312) 212 8724
Ithalat Genel Mudurlugu  Fax: (90-312) 212 8765
(Undersecretariat of Foreign Trade, 
General Directorate of Imports)
Eskisehir Karayolu, Inonu Bulvari
06510 Emek, Ankara, Turkey
(Information on Turkish import regulations and sets customs duties and 
surcharges on imported products)

Hazine Mustesarligi  Tel: (90-312) 212 8871
Banka ve Kambiyo Genel Mudurlugu  Fax: (90-312) 212 8775
(Undersecretariat of Treasury,
General Directorate of Banking and
Foreign Exchange General Directorate)
Eskisehir Karayolu, Inonu Bulvari
06510 Emek, Ankara, Turkey
(Primary source of information on Turkey's banking regulations)
  
Basbakanlik Ozellestirme Idaresi 
Baskanligi   Tel:(90-312) 441 1500
(Prime Ministry, Privatization   Fax:(90-312) 440 3271
Administration)
Huseyin Rahmi Gurpinar Cad, No 2
06680 Cankaya, Ankara, Turkey
(Privatization of state economic enterprises)  

Devlet Istatistik Enstitusu  Tel: (90-312) 417 6440
(State Institute of Statistics)  Fax: (90-312) 418 5027
Necatibey Caddesi No. 114
06100 Ankara, Turkey
(Responsible for all types of statistics)

Turk Standartlari Enstitusu (TSE)  Tel: (90-312) 417 0020
Standart Hazirlama Baskanligi  Fax: (90-312) 425 4399
(Turkish Institute of Standards, Standards
Preparation Department)
Necatibey Caddesi No. 112
06100 Bakanliklar, Ankara, Turkey
(Sets standards for all types of materials, products, and services in 
Turkey)

TUBITAK-Turkiye Bilimsel ve Teknik  Tel: (90-312) 468 5300
Arastirma Kurumu (The Scientific and  Fax: (90-312) 427 7489
Technical Research Council of Turkey)
Ataturk Bulvari No. 221
06100 Kavaklidere, Ankara, Turkey
(Carries out research and development in positive sciences in line with 
the development plans)

IGEME-Ihracati Gelistirme Merkezi  Tel: (90-312) 417 2223
(Export Promotion Center)  Fax: (90-312) 417 2233
Mithatpasa Caddesi No. 60
Kizilay, Ankara, Turkey
(Promotes Turkish exports)


Defense

Milli Savunma Bakanligi (MND)  Tel: (90-312) 418 9616
Dis Tedarik Dairesi Baskanligi  Fax: (90-312) 417 7342
(Ministry of National Defense
Foreign Procurement Department)
Mudafaa Caddesi, Bakanliklar
Ankara, Turkey

Milli Savunma Bakanligi  Tel: (90-312) 417 1466
NATO Enf. Daire Baskanligi  Fax: (90-312) 418 3384
(Ministry of National Defense
NATO Infrastructure Department)
Bakanliklar, Ankara, Turkey

Savunma Sanayii Mustesarligi (SSM)  Tel: (90-312) 417 2326
(Undersecretariat for Defense Industries)  Fax: (90-312) 417 3266
Inonu Bulvari, Kirazlidere Mevkii
Ankara, Turkey

Jandarma Genel Komutanligi  Tel: (90-312) 418 2371
Ikmal Sube Mudurlugu  Fax: (90-312) 418 9208
(Turkish Gendarmerie Command
Procurement Department)
Ankara, Turkey

Emniyet Genel Mudurlugu  Tel: (90-312) 425 4832
Tedarik Sube Mudurlugu  Fax: (90-312) 418 2152
(General Directorate of Security Affairs,
Procurement Department)
Dikmen Yolu No. 89
Yukari Ayranci, Ankara, Turkey


Public Works and Housing

Bayindirlik ve Iskan Bakanligi  Tel: (90-312) 417 9260
(Ministry of Public Works and Settlement)  Fax: (90-312) 418 0406
Vekaletler Caddesi No. 1
Bakanliklar, Ankara, Turkey

Iller Bankasi Genel Mudurlugu  Tel: (90-312) 310 3141
(Municipalities Bank)  Fax: (90-312) 312 2989
Ataturk Bulvari No. 21
Opera, Ulus, Ankara, Turkey
(Financing of Municipalities' projects)

T.C. Basbakanlik  Tel: (90-312) 446-9722
Guneydogu Anadolu Projesi (GAP)  Fax: (90-312) 437-6777
(Prime Ministry Southeastern Anatolia Project)
Regional Development Administration
Ugur Mumcu Sokak 59
06700 G.O.P. Ankara, Turkey
(Carries out major projects for development of Southeastern Anatolia)

Devlet Su Isleri Genel Mudurlugu  Tel: (90-312) 418-3409
(General Directorate of State Water Works)  Fax: (90-312) 418-2498

Inonu Bulvari, 06100 Yucetepe
Ankara, Turkey  
(In charge of construction of dams and hydro electric power plants.)

Demiryollari, Limanlar ve Hava Meydanlari  Tel: (90-312) 212-9550
(DLH) (General Directorate of Railways,  Fax: (90-312) 212-3847
Harbors, and Airports Construction)
Ulastirma Bakanligi
Ankara, Turkey
(In charge of construction of new railways, harbors and airports.)

Communications

Ulastirma Bakanligi (Ministry of  Tel: (90-312) 212-4632
(Communications and Transportation)  Fax: (90-312) 212-4187
Bahcelievler Son Durak
Emek, Ankara, Turkey

Turkiye Radyo ve Televizyon Kurumu  Tel: (90-312) 490-4300
Genel Mudurlugu (TRT)  Fax: (90-312) 490-1109
(General Directorate of Turkish Radio and
Television)
Ataturk Bulvari No. 108
06100 Kavaklidere, Ankara, Turkey

Posta-Telgraf-Telefon Genel Mudurlugu   Tel: (90-312) 313-1130
(PTT General Directorate)  Fax: (90-312) 313-1153
Samsun Yolu
06101 Aydinliklar, Ankara, Turkey

Telsiz Genel Mudurlugu  Tel: (90-312) 212-3800
(General Directorate of Radio 
Communications)  Fax: (90-312) 221-3226
Ulastirma Bakanligi Sitesi
91 Sokak, No 5, L Blok
06510 Emek, Ankara, Turkey


Transportation

Karayollari Genel Mudurlugu  Tel: (90-312) 425-2343
(General Directorate of State Highways)  Fax: (90-312) 418-6996
06350 Yucetepe Mahallesi, Ankara, Turkey

Turk Hava Yollari Genel Mudurlugu (THY)  Tel: (90-212) 574 7601
(General Directorate of Turkish Airlines)  Fax: (90-212) 574 7444
Ataturk Havalimani, Yesilkoy
Istanbul, Turkey

Devlet Hava Meydanlari Isletmesi (DHMI)  Tel: (90-312) 212-2568
(State Airports Administration)  Fax: (90-312) 222-3754
Bahcelerarasi Caddesi
06330 Etiler, Ankara, Turkey
(In charge of construction and operation of state airports)

Devlet Demiryollari Genel Mudurlugu (TCDD)  Tel: (90-312) 309 0515
(General Directorate of State Railways  Fax: (90-312) 312 3215
Administration)
Istasyon, Ankara, Turkey


Agriculture and Rural Affairs

Tarim, Orman ve Koyisleri Bakanligi   Tel: (90-312) 417 8400
(Ministry of Agriculture, Forestry and  Fax: (90-312) 425 2016
Rural Affairs)
Tarimsal Uretim Gelistirme Genel Mudurlugu  
(General Directorate of Agricultural
Production Development)
Milli Mudafaa Caddesi No. 20
Kizilay, Ankara, Turkey

Orman Bakanligi  Tel: (90-312) 417 6000
(Ministry of Forestry)  Fax: (90-312) 418 7354
Ataturk Bulvari No. 153
Bakanliklar, Ankara, Turkey

Toprak Mahsulleri Ofisi (TMO)  Tel: (90-312) 418 4267
(Soil Products Office)  Fax: (90-312) 417 5934
Milli Mudafaa Caddesi No. 18
06100 Kizilay, Ankara, Turkey

Koy Hizmetleri Genel Mudurlugu  Tel: (90-312) 287 3360
(General Directorate of Rural Services)  Fax: (90-312) 287 7213
Eskisehir Yolu 9. Km,
Ankara, Turkey

Turkiye Zirai Donatim Kurumu (TZDK)  Tel: (90-312) 317 0220
(Turkish Agricultural Supply Department)  Fax: (90-312) 347 0319
Fatih Caddesi No. 33
Diskapi, Ankara, Turkey


Energy and Natural Resources

Enerji ve Tabii Kaynaklar Bakanligi  Tel: (90-312) 213-6601
(Ministry of Energy and Natural Resources)  Fax: (90-312) 223-6984
Konya Yolu, 06100 Bestepe
Ankara, Turkey

TEDAS - Turkiye Elektrik Dagitim A.S.  Tel: (90-312) 212 6915 (30 lines)
Genel Mudurlugu)   Fax: (90-312) 222 9890            
(Turkish Electricity Distribution Co., Inc.)  
Inonu Bulvari No. 27
06440 Bahcelievler
Ankara, Turkey

TEAS - Turkiye Elektrik Iletim Uretim A.S.  Tel: (90-312) 212 6915 (30 
lines)
Genel Mudurlugu  Fax: (90-312) 222 9890         
(Turkish Electricity Generation and
Transmission Co. Inc.)
Inonu Bulvari No. 27
06440 Bahcelievler
Ankara, Turkey

Turkiye Petrolleri Anonim Ortakligi (TPAO)  Tel: (90-312) 286 9100
(Gen. Directorate of Turkish Petroleum Corp.)  Fax: (90-312) 286 9000
Mustafa Kemal Mahallesi 2. Cadde No. 86
06520 Esentepe, Ankara, Turkey
(Principal activities are exploration, drilling and production of oil, 
natural gas and geothermal energy)

BOTAS-Boru Hatlari ile Petrol Tasima  Tel: (90-312) 427-8060
(Petroleum Pipeline Corporation)  Fax: (90-312) 427-6659
Gunes Sokak No. 11
06690 Guvenevler
Ankara, Turkey

PETKIM-Petrokimya Holding A.S.  Tel: (90-232) 616 1240
Genel Mudurlugu (General Directorate of  Fax: (90-232) 616 1248
Petrochemical Industries)
P.O. Box 12, 35801 Aliaga
Izmir, Turkey


Mining

Etibank Genel Mudurlugu  Tel: (90-312) 229-2955
Cihan Sokak No. 2  Fax: (90-312) 231-0755
Sihhiye, Ankara, Turkey
(The largest non-ferrous mining, metallurgy and banking enterprise in 
Turkey)

Turkiye Demir ve Celik Isletmeleri  Tel: (90-312) 432-3601
Genel Mudurlugu (TDCI)  Fax: (90-312) 434-4705
Yatirim ve Planlama Dairesi 
(Turkish Iron and Steel Works, Investment
and Planning Department)
Ziya Gokalp Caddesi, Kurtulus, Ankara, Turkey

Turkiye Komur Isletmeleri Kurumu  Tel: (90-312) 384 1720
Genel Mudurlugu (TKI)  Fax: (90-312) 384 1635
(General Directorate of the Turkish
Coal Enterprises)
Hipodrom Caddesi, Ulus, Ankara, Turkey
(Operates lignite, bituminous schist and asphaltite mines in Turkey)

Turkiye Taskomuru Kurumu  Tel: (90-372) 252 4048
Genel Mudurlugu (TTK)    Fax: (90-372) 251 1900
(General Directorate of the Turkish
Hard Coal Enterprises)
Zonguldak, Turkey
(Hard coal mining)      

Karadeniz Bakir Isletmeleri A.S. (KBI)  Tel: (90-312) 435 5400
(Black Sea Copper Works Co.)  Fax: (90-312) 432 2013
Ziya Gokalp Caddesi No. 17
06100 Ankara, Turkey
(Mining of copper ore and copper production)

Maden Tetkik ve Arama Enstitusu (MTA)  Tel: (90-312) 287 3430
(Mineral Research and Exploration Inst.)   Fax: (90-312) 287 9188
Eskisehir Yolu, Balgat
Ankara, Turkey
(Mineral research organization)


Health

Saglik Bakanligi (MOH)  Tel: (90-312) 435-5680
(Ministry of Health)  Fax: (90-312) 435-0546
Refik Saydam Institute of Health      
Directorate of Environmental Health Research
06410 Sihhiye, Ankara, Turkey
(The directorate operates a central laboratory in environmental 
pollution measurement, monitoring, control and analysis in Ankara, and 
has a dozen smaller laboratories in other cities)


Ministry of Health (MOH)  Tel: (90-312) 435-6440
General Directorate of Basic Health Serv.  Fax: (90-312) 434-4449
Environmental Health and Health Units Dept.
Mithatpasa Caddesi
06410 Sihhiye, Ankara, Turkey
(The department has 76 provincial directorates operating under 
provincial Governorates.  They are responsible for issuing permits, 
measurement, monitoring, control and analysis of environmental pollution 
control)


Environment

Cevre Bakanligi (MOE)  Tel: (90-312) 285-3283
(Ministry of Environment)  Fax: (90-312) 286-2271
General Directorate of Environmental Impact
Assessment and Planning
and Control Air Management Department
Eskisehir Yolu 8. Km., Ankara, Turkey
(MOE is the regulatory agency in the environmental pollution control 
field)


Education

Milli Egitim Bakanligi  Tel: (90-312) 425 5330
(Ministry of National Education)  Fax: (90-312) 417 7027
Bakanliklar, Ankara, Turkey

Yuksek Ogretim Kurulu (YOK)  Tel: (90-312) 266 4700
(Higher Education Council)  Fax: (90-312) 266 4759
Bilkent Universitesi
Ankara, Turkey

Turkish Business/Trade Associations

DEIK-Dis Ekonomik Iliskiler Kurulu  Tel: (90-212) 243-4180
(Foreign Economic Relations Board)  Fax: (90-212) 243-4184
Istiklal Caddesi, 286/9
Odakule, Beyoglu 
Istanbul, Turkey   
(Its mandate is to promote improved external economic relations.  DEIK 
is an excellent source of commercial information and contacts.  To this 
end, DEIK has promoted the establishment of bilateral business councils 
in addition to the Turkish-American Business Council.)

TABA-Turk-Amerikan Isadamlari Dernegi    Tel: (90-212) 274-2824
(Turkish-American Businessmen's Association)    Fax: (90-212 275-9316
Barbaros Bulvari, Eser Apt. 48/16, Kat: 5
80700 Balmumcu 
Istanbul, Turkey
(Its objective is to increase commercial activity between the United 
States and Turkey and to promote the exchange of information and joint 
activities.  TABA has been particularly active in promoting U.S.-Turkish 
trade with the Newly Independent States (NIS) in Central Asia, 
sponsoring several joint trade missions to the region.) 

TABA - Izmir  Tel: (90-232) 441-4068
Sair Esref Bulvari No. 18/505  Fax: (90-232) 441-4069
Altay Is Merkezi 
35230 Izmir, Turkey
(Turkish-American Business Association Izmir is a separate organization, 
independent from the TABA in Istanbul.)


TUSIAD-Turk Sanayicileri ve Isadamlari  Tel: (90-212) 249-1929
Dernegi (Turkish Industrialists' and  Fax: (90-212) 249-1350
Businessmen's Association)       (90-212) 249-0913
Mesrutiyet Caddesi No. 74
80050 Tepebasi, Istanbul, Turkey
(Maintains research facilities and publishes an authoritative annual 
report on the Turkish economy.  It counts the largest industrialists in 
Turkey among its members.)

Union of Chanbers of Commerce, Industryu, ,Maritime Commerce and 
Commodity Exchanges of Turkey (TOBB)
Ataturk Bulvari No. 149
06640 Bakanliklar, Ankara, Turkey

TOBB-Investment Promotion Department  Tel: (90-312) 417-8667
--same address as above--  Fax: (90-312) 417-9711
Contact: Mr. Mehmet Urcu, Executive Director
(TOBB and the United States Agency for International Development (USAID) 
have established a new investment promotion program to assist Turkish 
companies seeking to form joint ventures with U.S. firms)

ESIAD-Aegean Industrialists' and  Tel: (90-232) 463-7827
Businessmen's Association  Fax: (90-232) 463-7693
(TUSIAD's Izmir extension) 
Cumhuriyet Meydani No. 12, Kat 6, D. 601
35210 Izmir, Turkey

YASED-Yabanci Sermaye Koordinasyon Dernegi  Tel: (90-212) 272-5094
(Assn. for Foreign Capital Coordination)  Fax: (90-212) 274-6664
Barbaros Bulvari, Morbasan Sokak
Koza Is Merkezi B Blok/Kat 1
80700 Besiktas, Istanbul, Turkey
(Works to maintain a dialogue between foreign investors and the Turkish 
Government on the investment environment and acts as a public relations 
firm advertising the positive effects of foreign investment.)

Ege Genc Isadamlari Dernegi   Tel: (90-232) 278-3030
(Aegean Young Businessmen's Association)  Fax: (same number)
Mustafa Kemal Sahil Bulvari
Levent Marina, Cakalburnu
Izmir, Turkey
(The association is designed to attract both foreign business to the 
Izmir region and to act as a clearinghouse for opportunities.)
  

Agriculture

Tohumcular Endustrisi Birligi Dernegi  Tel: (90-312) 427-2978
(Seed Industry Association)
Tunali Hilmi Caddesi No. 60/11
06662 Kucukesat, Ankara, Turkey

Yem Sanayicileri Dernegi  Tel: (90-312) 431-1685
(Food Industrialists Association)  Fax: (90-312) 431-2704
Tuna Caddesi, Halk Sokak 20/7
Yenisehir, Ankara, Turkey 


Automotive

Otomobil Ithalatcilari Dernegi  Tel: (90-212) 288-6184
(Automobile Importers' Association)  Fax: (90-212) 275-7069
Yenitarlabasi Caddesi
Guzel Izmir Apt. 20/3
Taksim, Istanbul, Turkey

Otomotiv Sanayii Dernegi  Tel: (90-216) 318-2994
(Automotive Manufacturers' Association)   Fax: (90-216) 321-9497
Atilla Sokak No. 6
81190 Altunizade, Istanbul, Turkey


Advertising

Reklamcilar Dernegi  Tel: (90-212) 257-8873
(Advertising Firms' Association)  Fax: (90-212) 257-8870
Yildiz Cicegi Sokak No. 19
80630 Etiler, Istanbul, Turkey


Chemicals

Kimya Sanayicileri Dernegi  Tel: (90-212) 266-0830
(Chemical Manufacturers' Association)  Fax: (90-212) 273-0898
Yildiz Posta Caddesi
Ayyildiz Sitesi No. 28/5, 55. Blok
Esentepe, Istanbul, Turkey

Computers

Turkiye Bilisim Dernegi  Tel: (90-312) 418-4755
(Informatics Association of Turkey)  Fax: (90-312) 425-4817
Selanik Caddesi No. 17/4
06650 Kizilay, Ankara, Turkey

Tubisad Bilgi Islem Hizmetleri San. Der.  Tel: (90-212) 268-6615
(Informatic Services Association)  Fax: (90-212) 282-3998
Nispetiye Mahallesi, Baslik Sokak 
Mehap Apt. No. 16/4
80600 Levent, Istanbul, Turkey


Contracting and Construction
Turkiye Muteahhitler Birligi  Tel: (90-312) 439-1712
(Contractors Association of Turkey)  Fax: (90-312) 439-4621
Ahmet Mithat Efendi Sokak No. 21
96550 Cankaya, Ankara, Turkey

Turkiye Insaat ve Tesisat Muteahhitleri  Tel: (90-312) 439-1712
Birligi (Assn. of Construction Contractors  Fax: (90-312) 439-4621
of Turkey)
Ahmet Mithat Efendi Sokak 21/2
96550 Cankaya, Ankara, Turkey 

Turkiye Prefabrike Betonarme Yapi Ureten  Tel: (90-312) 418-4035
Kurulus Mensuplari Birligi  Fax: (90-312) 417-1970
(Prefabricated Concrete Construction)
Mesrutiyet Caddesi, Alibey Apt. 29/18
06420 Kizilay, Ankara, Turkey

Toplu Konut Yapimcilari Dernegi  Tel: (90-212) 275-6695
(Mass Housing Association)  Fax: (90-212) 275-6696
Gazeteciler Sitesi, Yazarlar Sokak 28/3
80630 Esentepe, Istanbul, Turkey


Defense Industry

SASAD-Savunma Sanayii Imalatcilari Dernegi  Tel: (90-312) 440-5566
(Defense Industries Manufacturers' Assn.)  Fax: (90-312) 440-5567
Cankaya Caddesi 16/3
06680 Cankaya, Ankara, Turkey


Electronics

Elektronik Cihaz Imalatcilari Dernegi  Tel: (90-212) 266-0290
(Electronic Equipment Manufacturers' Assn.)  Fax: (90-212) 272-4711
Yildiz, Barbaros Bulvari
Sahir Kesebir Sokak 34
80700 Besiktas, Istanbul, Turkey

Elektronik Sanayicileri Dernegi  Tel: (90-216) 386-0909
(Electronic Industrialists Association)  Fax: (90-216) 386-0910
Bagdat Caddesi No. 477/4
81070 Suadiye, Istanbul, Turkey


Environment and Pollution Control

Cevre Teknolojisi Uygulayicilari Dernegi  Tel: (90-212) 272-2904
(Association of Practitioners of  Fax: (90-212) 272-2904
Environmental Technology
Irfan Bastug Caddesi, Yuva Apt. 3/10
80280 Gayrettepe, Istanbul, Ankara

Turkiye'nin Tabiatini Koruma Dernegi  Tel: (90-216) 349 6602
(Association for Preservation of Turkey's   Fax: (90-216) 336 5212
Nature)
Kemeralti Caddesi, Vekilharc Sokak No. 16
Kadikoy, Istanbul, Turkey
 

Insurance

Turkiye Sigorta Sirketleri Birligi  Tel: (90-212) 275-8976
(Turkish Insurance Firms' Association)  Fax: (90-212) 275-9855
Balmumcu, Morbasan Sokak
Koza Is Merkezi, B Blok, Kat 3
Besiktas, Istanbul, Turkey


Medical and Health Care

Tabibler Odasi  Tel: (90-212) 522-1911
(Chamber of Medical Doctors)  Fax: (90-212) 522-7374
Turkocagi Caddesi 17, Kat 3
Cagaloglu, Istanbul, Turkey

Dis Hekimleri Birligi  Tel: (90-312) 417-7492
(Turkish Dental Association)  Fax: (90-312) 417-1922
Mesrutiyet Caddesi 32/8
Yenisehir, Ankara, Turkey


Mining and Minerals

Turkiye Madenciler Dernegi  Tel: (90-212) 245-1503
(Turkish Miners' Association)  Fax: (90-212) 244-8335
Istiklal Caddesi No. 471/1
Beyoglu, Istanbul, Turkey

Genc Madenciler Dernegi  Tel: (90-212) 264-6922
(Young Miners Association)  Fax: (90-212) 264-2996
4. Levent, Cinar Sokak No. 19
80620 Besiktas, Istanbul, Turkey


Packaging and Packing

Ambalaj Sanayicileri Dernegi  Tel: (90-212) 362-8155
(Packaging Industrialists' Association)  Fax: (90-212) 352-8156
Kozyatagi, Inonu Caddesi
STFA Bloklari Blok 3, Kat 8, Daire 35
81090 Kadikoy, Istanbul, Turkey  
 
Karton, Ambalaj Sanayicileri Dernegi  Tel: (90-212) 267-4933
(Carton/Paper Packaging Industrialists' Assn)  Fax: (90-212) 267-1207
23 Temmuz Meydani No. 1, Kat 2
80300 Esentepe, Istanbul, Turkey


Paper and Pulp

Seluloz ve Kagit Sanayicileri Vakfi  Tel: (90-212) 266-9524
(Paper and Paper Pulp Industrialists'   Fax: (90-212) 266-9524
Foundation)
Buyukdere Caddesi No. 81
Kurgu Is Hani Kat 8, Daire 15
80300 Mecidiyekoy, Istanbul, Turkey


Textiles

Turkiye Giyim Sanayicileri Dernegi  Tel: (90-212) 274-2525
(Turkish Clothing Manufacturers' Assn.)  Fax: (90-212) 272-4060
Yildiz Posta Caddesi
Dedeman Is Hani 48/8
80700 Gayrettepe, Istanbul, Turkey   


Travel and Tourism

Turkiye Seyahat Acentalari Dernegi  Tel: (90-212) 245-8950
(Travel Agents Association of Turkey)  Fax: (90-212) 252-3183
Cumhuriyet Caddesi No. 3
80230 Elmadag, Istanbul, Turkey

Turizm Yatirimcilari Dernegi  Tel: (90-212) 245-5545
(Tourism Investors Association)  Fax: (90-212) 245-6031
Inonu Caddesi 48, Isik Apt. Kat 3
Gumussuyu, Istanbul, Turkey


Chambers of Commerce in the Three Largest Cities in Turkey

Union of Chambers of Commerce, Industry,    Tel: (90-312) 418-3360
Maritime Commerce and Commodity Exchanges   Fax: (90-312) 418-3268
of Turkey (TOBB)
Ataturk Bulvari No. 149
06640 Bakanliklar, Ankara, Turkey
(TOBB acts as the main office for various chambers located in different 
cities.)  

Ankara Chamber of Commerce  Tel: (90-312) 310-4810
Sehit Tegmen Kalmaz Caddesi No. 30  Fax: (90-312) 310-8436
06050 Ulus, Ankara, Turkey

Ankara Chamber of Industry  Tel: (90-312) 417-1200
Ataturk Bulvari 193/4  Fax: (90-312) 417-2060
Kavaklidere, Ankara, Turkey

Istanbul Chamber of Commerce  Tel: (90-212) 511-4150
Ragip Gumuspala Caddesi No. 84  Fax: (90-212) 526-2197
34378 Eminonu, Istanbul, Turkey

Istanbul Chamber of Industry  Tel: (90-212) 252-2900
Mesrutiyet Caddesi 118  Fax: (90-212) 249-3963
80050 Tepebasi, Istanbul, Turkey

Deniz Ticaret Odasi  Tel: (90-212) 252-0130
(Chamber of Maritime Commerce)  Fax: (90-212) 293-7935
Meclisi Mebusan Caddesi No. 22
80154 Sali Pazari
Istanbul, Turkey

Izmir Chamber of Commerce  Tel: (90-232) 441-7777
Ataturk Caddesi No. 126  Fax: (90-232) 483-7853
35210 Pasaport, Izmir, Turkey

Aegean Chamber of Industry  Tel: (90-232) 484-4330
Cumhuriyet Bulvari No. 63  Fax: (90-312) 483-9937
Izmir, Turkey

Market Research Firms

IBS-International Business Services A.S.  Tel: (90-212) 231-0481
Abdi Ipekci Caddesi, Kizilkaya Apt. 59/4  Fax: (90-212) 231-6614
80200 Macka, Istanbul, Turkey

Arthur Andersen & Co. (YALIM A.S.)  Tel: (90-312) 468-4081
Arjantin Caddesi No. 17/6  Fax: (90-312) 468-4291
06700 Kavaklidere, Ankara, Turkey

Denet Touche Ross  Tel: (90-212) 275-9690
Denet Mali Danismanlik A.S.  Fax: (90-212) 272-3323
Buyukdere Caddesi No. 121
Ercan Han, Kat 4-6
80300 Gayrettepe, Istanbul, Turkey

Major Commercial Banks

Citibank, N.A.  Tel: (90-312) 417-5060
Ataturk Bulvari No. 177  Fax: (99-312) 418-4549
06680 Kavaklidere, Ankara, Turkey

Koc Bank  Tel: (90-312) 418-1804
Ataturk Bulvari, Zafer Ishani 58/1  Fax: (90-312) 425-3237
Kizilay, Ankara, Turkey

Turkiye Is Bankasi A.S.  Tel: (90-312) 428-1140
Ataturk Bulvari No. 191  Fax: (90-312) 425-0750
06680 Kavaklidere, Ankara, Turkey

Yapi ve Kredi Bankasi A.S.  Tel: (90-212) 280-1111
Yapi Kredi Plaza A Blok  Fax: (90-212) 280-1670
Buyukdere Caddesi
80620 Levent, Istanbul, Turkey

Akbank T.A.S.  Tel: (90-212) 270-3355
Sabanci Center, 4. Levent  Fax: (90-212) 269-7383
80745 Istanbul, Turkey

T.C. Ziraat Bankasi  Tel: (90-312) 310-3747
Gazi Mustafa Kemal Bulvari  Fax: (90-312) 310-1134
Sihhiye, Ankara, Turkey

Turkiye Garanti Bankasi A.S.  Tel: (90-212) 285-4040
Buyukdere Caddesi No. 63  Fax: (90-212) 285-4040
80670 Maslak, Istanbul, Turkey

Iktisat Bankasi T.A.S.  Tel: (90-212) 274-1111
Buyukdere Caddesi No. 165  Fax: (90-212) 274-7028
80496 Zincirlikuyu, Istanbul, Turkey

Turk Ticaret Bankasi A.S.  Tel: (90-212) 288-5900
Yildiz Posta Caddesi No. 2  Fax: (90-212) 288-6113
80280 Gayrettepe, Istanbul, Turkey

Turkiye Imar Bankasi T.A.S.  Tel: (90-212) 275-1190
Buyukdere Caddesi, Dogus Han No. 42-46  Fax: (90-212) 272-4720
80290 Mecidiyekoy, Istanbul, Turkey

U.S. Embassy Trade Personnel

Mr. James Wilson/Commercial Counselor  Tel: (90-312) 467-0949
Mr. Jeremy Keller/Commercial Attache  Fax: (90-312) 467-1366
American Embassy
Foreign Commercial Service (FCS)
Ataturk Bulvari 110
06100 Kavaklidere, Ankara, Turkey

Mr. John Muehlke, Jr.  Tel: (90-212) 251-1651
Commercial Consul  Fax: (90-212) 252-2417
American Consulate General
Foreign Commercial Service (FCS)
Mesrutiyet Caddesi No. 104-108
80050 Tepebasi, Istanbul, Turkey

Ms. Berrin Erturk  Tel: (90-232) 441-2446
Commercial Assistant  Fax: (90-232) 489-0267
Foreign Commercial Service, Izmir Office
Izmir Chamber of Commerce
Ataturk Caddesi No. 126, 5th Fl.
35210 Pasaport, Izmir, Turkey

Mr. Eugene Dorris  Tel: (90-312) 468-6110, ext.252
Economic Counselor   Fax: (90-312) 468-6138              
American Embassy  
Economic Section (ECON)
Ataturk Bulvari 110
06100 Kavaklidere, Ankara, Turkey

Mr. Ron Anthony  Tel: (90-312) 468-6110, ext.300
Defense Attache  Fax: (90-312) 467-4468           
Defense Attache Office (DAO)  
American Embassy
Ataturk Bulvari 110
06100 Kavaklidere, Ankara, Turkey

Major General John Welde  Tel: (90-312) 418-5296
Chief ODC (Formerly JUSMMAT)  Fax: (90-312) 287-9978
ODC-Office of Defense Cooperation, Turkey
Ismet Inonu Bulvari No. 94
Ankara, Turkey


Washington-Based U.S. Government Country Contacts

Mr. Boyce Fitzpatrick  Tel: (202) 482-2177
Turkey Desk Officer  Fax: (202) 482-2897
U.S. Department of Commerce
Office of Western Europe, Room 3045
U.S. Department of Commerce
Washington, D.C. 20230

Desk Officer for Turkey  Tel: (202) 647-6114
Department of State  Fax: (202) 647-5087
Office of Southern Europe
Room 5511
U.S. Department of State
2201 C Street NW
Washington, DC 20520

Geoffrey R. Jackson  Tel: (703) 875-4357
Regional Director for Central, Eastern,  Fax: (703) 875-4009
and Southern Europe
U.S. Trade and Development Agency (TDA)
Room 309. SA-16
Washington, D.C. 20523-1602

Area Officer  Tel: (202) 720-3080
Department of Agriculture  Fax: (202) 720-6063
Washington, D.C. 20250-1000 

Export-Import Bank of the United States  Tel: (202) 535-4761
811 Vermont Avenue, NW  Fax: (202) 566-7524
Washington, D.C. 29571

Overseas Private Investment Corporation  Tel: (202) 336-8476
1100 New York Avenue, NW  Fax: (202) 408-9866
Washington, D.C. 50527
 
U.S.-Based Multipliers Relevant for Country

American-Turkish Council (ATC)  Tel: (202) 783-0483
1010 Vermont Avenue, N.W., Suite 1020  Fax: (202) 783-0511
Washington, D.C. 20005-4905



APPENDIX F:  MARKET RESEARCH

                FY95 INDUSTRY SECTOR ANALYSES

Subsector                  Sector  Analyst           Due Date

Solid Waste Treatment Eq.  POL     Ayhan Acar         11/94

Optical Instruments        LAB     Berrin Erturk      12/94 

Personal Computers         CPT     Erol Omer          01/95

Thermal and Hydro Power    ELP     Serdar Cetinkaya   01/95
Generating Equipment

Defense Projects           DFN     Meral Ishakbeyoglu 02/95

Local Area Network Equip.  CPT     Ayhan Acar         03/95 

Application Software       CSF     Gulsun Bilgen Konuray  03/95

Value Added Networks  TES  Serdar Cetinkaya            05/95

Construction Management  ACE  Erol Omer                04/95
Services

Port Development  ACE  Meral Ishakbeyoglu              06/95

Electronics Industry Production/
Test Eq.  EIP  Berrin Erturk  07/95

Women's Apparel  APP  Gulsun Bilgen Konuray




                    FY96 MARKET RESEARCH

    
Automotive Parts/Service Equip.  APS  Berrin Erturk  96

Textile Machinery/Equipment      TXM  Berrin Erturk  96

Airport/Ground Support Equipment APG  Erol Omer  96

Architectural/Construction/
Engineering Services             ACE  Erol Omer  96

Building Products                BLD  Gulsun B. Konuray   96

Computer Software                CSF  Gulsun B. Konuray  96

Security Equipment               SEC  Lisa Dehart  96

Telecommunications Services      TES  Lisa Dehart  96

Electrical Power Systems         ELP  Serdar Cetinkaya  96

Telecommunications Equipment     TEL  Serdar Cetinkaya  96

Defense Industry Equipment       DFN  Meral Ishakbeyoglu  96

Medical Equipment                MED  Meral Ishakbeyoglu  96

Electronics Industry Production/
Test Equipment                   EIP  Ayhan Acar  96

Pollution Control Equipment      POL  Ayhan Acar  96

Food Processing/Packaging Equip.  FPP  Hulya Arac  96


FY96 FAS COMMODITY REPORTS AND MARKET BRIEFS


Agricultural Situation

Grain and Feed

Oil seeds and Products

Livestock

Poultry

Tree Nuts

Dried Fruit

Sugar

Tobacco

Tomatoes and Tomato Paste

Fresh Deciduous Fruits

Citrus


Additional FCS reports including International Market Insights (IMI's) 
are available on the National Trade Data Bank or from the Turkey Desk 
Officer, Department of Commerce.  FAS reports are available from Reports 
Office/USDA/FAS, Washington, DC. 20250.



APPENDIX G:  TRADE EVENT SCHEDULE


1.  Event Name:  High Tech USA
2.  Event ID No:  96000442
3.  Event Location:  Ankara, Istanbul, Izmir
4.  Industry Themes:  High technology products
5.  Dates of Event:  October 1995-February 1996
6.  Type of Event:  RC
7.  Control Officer:  Ankara: Ayhan Acar
    Tel: 90-312-467-0949
    Istanbul: Erol D. Omer
    Tel: 90-212-251-1651
    Izmir: Berrin Erturk
    Tel: 90-232-441-2446
8.  Est. Workdays:  FSN 20, US 3
9.  Target No. of Firms:  Unknown
10.  Est. Collections:  Unknown
11.  Est. Cost:  USD 3,000


1.  Event Name:  Housewares and Consumer Goods 
2.  Event ID No:  96000671
3.  Event Location:  Istanbul
4.  Industry Themes:  Housewares and consumer products
5.  Dates of Event:  October 16-24, 1995
6.  Type of Event:  MIR
7.  Control Officer:  Erol Omer
    Tel: 90-212-251-1651
8.  Est. Workdays:  FSN 20, US 3
9.  Target No. of Firms:  Unknown
10.  Est. Collections:  Unknown
11.  Est. Cost:  USD 3,000
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