• CILLER AND BAYKAL PRESS ECEVIT: RETURN THE DUTY
• COMMENTARY: THE GOVERNMENT PROBLEM (Taha Akyol)
• NO FORMULA LEFT FOR ECEVIT
• ECEVIT STILL HAS HOPES

3. FOREIGN AFFAIRS ……………...4

• US: UNBELIEVABLE
• TURKEY INCREASES CO-OPERATION WITH ISRAEL
• COMMENTARY: NOT TO DEVELOP THE RELATIONS WITH EU (Gündüz Aktan )
• TURCO-EUROPEAN AFFAIRS: LOVE AND HATE

4. ECONOMY ………………………...5

• TURK ECONOMY SEEN TO SURVIVE UNDER WORSE SCENARIO
• INDUSTRY SLOWS DOWN

5. TV NEWS CAST …………………..6

------------------

APO IS FREE TO GO

-------------------------------

Rome's new game. Detention of Abdullah Ocalan in his villa in Rome has been removed. Ankara reacted the decision, strongly. It was reported that the reason of the decision was Germany. The Court of Appeals in Rome removed the decision it had initially taken to detain the terrorist. Apparently the decision has been taken when Germany replaced its initial arrest order with another one which does not aim for extradition. While Prime Minister Yilmaz said, "If he has been released without a condition, then we will appeal".

Deputy PM Ecevit said: "He was practically free anyway. We do not know what Italy's intentions are. Do they want to send him to another country? We do not know yet." There was an emergency meeting at the Ministry of Foreign Affairs. There is now word that Turkey may recall its Ambassador in Rome.

Meanwhile US reacted to the development strongly. Spokesman Rubin said that US was very much disturbed of this development and this will be a great blow on the fight against terorrism.

Analysts say, with such decision, Italy, pressed hard for embracing a terrorist, may let

"Apo escape to another country. After meeting with his counterpart Fischer, the German Minister of Foreign Affairs, Dini said, "Either we will try or deport him."

APO: I THANK TO D’ALEMA

--------------------------------------------

PKK leader Abdullah Ocalan (APO) sent a letter to Italian PM Massimo D’Alema, declaring that Rome is an ideal center for a so-called peace conference. La Reppublica daily published Apo’s letter.

In his letter Apo called on Italy to pioneer for an international conference. Apo claimed that he is ready to make an individual sacrifice to solve the Kurdish problem and he had come to Rome not to be tried but to make politics. He also thanked D’alema for the efforts spent by his government.

What May Happen now:

• According to the Left government of Italy, the only crime of Apo is entering Italy by a fake passport. He will be expelled if he obeys the laws and does not deal with politics.
• Italy will make use of the situation, to have the Southeast problem of Turkey discussed at the negotiating table. It will grant political asylum to Apo, the killed of thousands.
• The last chance of Italy to get rid of Apo is sending him to a third country if such a demand comes.

(Milliyet1 ,12;Yeniyuzyil,5 and all dailies)

***

UNITED STATES STRIKES IRAQ

-----------------------------------------------------

The United States hit Iraq at local time 00.49, without a warning. As great explosions were heard in Baghdat, While House Spokesman Lockhart said, the US military forces have launched a major air raid against Iraq, With Clinton’s orders. British Prime Minister Tony Blair announced that British and American Forces joined the Desert Fox Operation.

US President Bill Clinton said that Saddam had not made use of the last chance given and therefore the operation had to begin. In his address to the world from the White House, Clinton said that by carrying out this attack before Ramadan, they have prevented any reaction from the Moslem world. The Republicans claim that the raid has been carried out, to postpone the impeachment of Clinton.

The operation started a few hours after the Saddam Administration announced that it stopped the work of the UN Arms monitoring commission. Tomahaw missiles launched by eight US ships in the Gulf started shelling Baghad and its vicinities.

Britain and United States carried out the operation under a full cooperation. Some officials of the Clinton Administration described the raid as "The Second Gulf War." The operation will reportedly last 72 hours because of the nearing Ramadan. The historical session at the US House of Representatives for the impeachment of Clinton which was planned for today, has been postponed because of the operation.

(Zaman,1,13;Milliyet,1,21;Hurriyet,1,20 and all dailies)

***

-----------------------------

CILLER AND BAYKAL PRESS ECEVIT: RETURN THE DUTY

--------------------------------------------------------------------------------------------

Revising his new government formula for a minority, supported by outside parties, Ecevit said that Yilmaz would "never" accept a CHP - DSP alternative. Ecevit explained that in the case of his failure to form the new government, the President would form an election government that would have to include 10 ministers from Virtue Party FP.

DYP leader Ciller, with whom Ecevit said he would meet again today, shut the doors on him: "Ecevit has been drawing yet another government model from the hat everyday for the last 10 days. He should give back the mandate."

Baykal reiterated this opinion by saying: "Although he is trying to unite the right wing, Ecevit is unable to get on with CHP. Let him return the mandate!"
FP(Virtue Party) leader Recai Kutan said "The name of a candidate for the prime ministerial position jointly determined by Ciller and ourselves will be submitted to the Head of the State. After considering the opinions of other parties about this candidate, we will declare this person to the President."

(Milliyet 1, 14)

***

COMMENTARY / TAHA AKYOL / MILLIYET

THE GOVERNMENT PROBLEM

---------------------------------------------

"I talked with Yasar Okuyan (MP) from ANAP (Motherland Party).

He opposed the DSP-CHP (Democratic Left Party- Republican People’s Party) coalition and said: ‘We will not support the left bloc definitely.’ And he added: ‘Next week , the Ecevit government will be formed.’

‘How?..’

‘As a DSP- ANAP- CHP and the independent deputies coalition.’

‘CHP don’t agree with it.’

Wait and see.’

Who will convince CHP? The State?..

Okuyan went on: ‘This government will be an executive government; the municipal elections will be held but the general elections will be postponed.’

These were the subjects on which the President had checked on the thoughts of the leaders before giving duty to Ecevit. (...)

"Before the Ecevit-Baykal meeting I’d also checked on the feelings of CHP. (Ali) Topuz (from CHP) had said ‘ definitely no’. ’CHP will not partake to the ANAP-DSP bloc’. (...) What Topuz said on FP were those: ‘FP did a great job for secularism and democratization. Will it be right to exclude it in this situation? Secularism will not suffer any harm from a government, to which FP will partake in a symbolic way. On the contrary, it will make easy, the participation of FP to the system.’

There is another expectation of Topuz:

‘In a broad based government, FP can support a democratization package which will be prepared jointly by the Social Democrats ant the center Right.

And so Turkey goes on to progress on the road to Europe. (...)’

"Baykal, proposing a left coalition to Ecevit, has saved his party from a tight corner in the eyes of the left public opinion and has prevented the disturbances inside his party."

(Milliyet December 16, p.17)

***

NO FORMULA LEFT FOR ECEVIT

------------------------------------------------------

Deputy Prime Minister Bulent Ecevit could not receive sufficient support for his Democratic Left Party-led minority government model. After turning down CHP (Republican People’s Party) leader Deniz Baykal’s call to form a CHP-DSP coalition, Ecevit finally gave up; there is no other formula in the hat!

Returning the Duty

-----------------------------------

As True Path Party (DYP) rejected the formula of Ecevit to establish a coalition between Motherland Party-True Path Party and Democratic Left Party, and CHP leader Baykal demanded a DSP-CHP coalition, Ecevit is left without any formula at his hand, to form a government. He is expected to return the mandate to Demirel after meeting once more with DYP leader Ciller. Now eyes are again on President Demirel and there is once more speculations that there will be a Cankaya (The presidential palace is referred to "Cankaya" as the kiosk is situated at the top of this hilly district-nta) government.

(Milliyet,1,6)

***

GunlukHaber:

ECEVIT DID NOT LOSE HOPE

-----------------------------------------------------------

DSP leader Bulent Ecevit said that CHP leader Deniiz Baykal har proposed him a DSP-CHP coalition just as a tactic and that he has not lost his hope.

Ecevit stressed once more that a CHP-DSP coalition, as desired by Baykal, can not materialize. Speaking at his party’s group meeting at Parliament, Ecevit said that ANAP was extending unconditional support to all kinds of government models to be established by himself and that DYP did not oppose his being the prime minister.

Ecevit stressed that he had not lost hope to form a government and will try to meet first DYP leader Ciler and then CHP leader Baykal, before making a decision about the government. Ecevit will meet Ciller at noon today.

(GunlukHaber,6)

***

-----------------------------

US: UNBELIEVABLE

--------------------------------

US administration was surprised with the decision of Italian government on the PKK leader APO. Italy had changed its decision and set the international terrorist free. An official from US State Department said the decision of Italy is unbelievable. In an official statement, US had labeled PKK as a terror organization and APO as a terrorist.

(Hürriyet 26)

***

TURKEY INCREASES CO-OPERATION WITH ISRAEL

-----------------------------------------------------------------------------

Commander of the Air Forces, Gen. Ilhan Kiliç visited Israel with a crowded group of officials and started a new period in Turco-Israel relations. Kiliç met with Israeli President Ezer Weizman and Parliament Speaker Dan Tichon and he also met with defense minister Izhak Mordehay. (In addition to those meetings Kiliç also met with the chief of Staff Shaul Mofaz) Kiliç said the co-operation of the two countries is very important for Turkey and Turkey wants to continue and expand the co-operation. Kiliç said he was impressed with the Israel’s military technology. (Israel modernizes the F-4 planes of Turkish air Forces)

(Milliyet 16)

***

COMMENTARY /GUNDUZ AKTAN / RADIKAL

NOT TO DEVELOP THE RELATIONS WITH EU

--------------------------------------------------------------------

"(...) At the last decision of EU; contrary to numerous decisions accepted before, the expectations (from Turkey) are now being forced as a systematic program. The decision, written in a dictatorial style, approaches the subject in a negative way.

The starting point of the decision is that: In Turkey, there is a civil war with the Kurds. So Turkey is being asked to accept the cease fire of PKK and stop the attacks to the Kurdish targets. Turkey is being demanded to fulfill its obligations of not torturing, not imprisoning the Kurds in the framework of the Customs Union Agreement. It’s interesting, Turkey has made no such promise.(...)

"There is another interesting thing. The decision demands Turkey to give permission, in the context of education (of the minorities) in their parent language, not only to the Kurdish but to the other languages too.

In this way, the agenda and the purpose of the international conference which was proposed by the European Parliament, has been fixed in advance. But we may be at ease. Because European Parliament says that the territorial integrity of Turkey will not suffer harm from these changes. According to the decision, when these demands will be fulfilled, we only will have come close to the criterion of Copenhagen. That is, still we will have a lot of work to be done. Meanwhile we will have to give an end to the occupation in (Northern) Cyprus and will improve our relations with our neighbors, especially with Greece.

"According to this approach, whatever Turkey has done is wrong. And whatever Greece, Cyprus, the neighbors of Turkey, Italy and PKK have done is right. What a coincidence!

EP says that, these excessive claims are being shared by an important civilian society sector in Turkey. I think, this sector, is being constituted by those who think that, to be an independent intellectual, one must oppose the "official view of state" in every way. (...)"

(Radikal December 16, p.11)

***

SERIAL: TURCO-EUROPEAN RELATIONS :

AN AFFAIR OF LOVE AND HATRED

--------------------------------------------------------------------

The Hannover-based DTA (The Association for Turkish and German Social and Literature Scientists) organized a three-day symposium in Hannover between 4 and 6 December. The DTA aims at promoting mutual exchange of information and knowledge

between Turkey and Germany.

Leading scientist participated in the symposium which started at the Senate Hall of the Hannover University. In her inaugural address, DTA’s Chairperson Dr.Elcin Kursat from the Hannover University, likened the historical attitude of the Turkish society towards Europe, to a love and hate affair , also saying that "The less powerful, less developed national groups , have this kind of feelings towards the civilization models anod powerful states which they take as a model." Kursat said that this approach of Turks towards the European civilization , prevents Turkey from developing a realistic European policy.

However, Kursat concluded, in spite of Panturkist ideologies and the fundamentalist movements in the country, "Turkey has no other alternative than the western alliance."

(Aylin Sagtur Mutlu-GunlukHaber,page8)

***

------------------

TURK ECONOMY SEEN TO SURVIVE UNDER WORSE SCENARIO

----------------------------------------------------------------------------------------------
Turkey is well placed to stave off financial crisis in the first half of next year despite the pressures of global economic turmoil and domestic political uncertainty, a leading private bank said on Wednesday.

"The system can survive until July even under a worst-case scenario unless a serious mistake is made," Hasan Ersel, assistant general manager of Yapi Kredi Bankasi (YKBNK.IS), told a news conference.

Yapi Kredi predicted that conditions in Turkey would return to normal in mid-1999 and the high margin between inflation and higher domestic interest rates could only be narrowed by resumption of the inflow of foreign capital.

"Holding general elections in April means that foreign investment inflow to Turkey will resume in the second half of 1999 after the polls and formation of a new government," general manager Burhan Karacam told the meeting.

Turkey, which will hold early general elections in April, has been suffering political turmoil since the collapse of conservative Prime Minister Mesut Yilmaz's coalition last month. Efforts by Prime Minister-designate Bulent Ecevit to form a government have been inconclusive.

Turkey had stronger economic fundamentals than any other emerging market, said Deniz Gokce, board member of Yapi Kredi and a professor of economics.

The ratio of Turkish current account deficit to gross domestic product (GDP) stood at 1.1 percent on the average in the five years to 1997-- far below 3.2 percent in Mexico, 5.7 percent in Thailand and 6.5 percent in Malaysia, he said.

Turkey also appeared the least risky country with a 23 percent share of short-term foreign debt in total debt stock in the same period. The ratio was 36.1 percent for Brazil, 41.4 percent for Thailand and 64.3 for South Korea, he said.

The private sector's debt accounted for 20 percent of the total, lower than 33 in Brazil and 35 percent in Thailand.

"We have more diversified exports than others," Gokce said.

"Today's conditions are very different than those on the eve of the 1994 crisis."

The economy, which grew eight percent in 1993 is expected to attain a lower growth rate at around four percent this year. The current account deficit is likely to remain well below $6.4 billion in 1993.

Inflation had been pulled down to 58.6 percent from 91 percent5 at end-97 under an IMF-monitored programme and the budget was in surplus if interest payments on debt were excluded since 1997.

Turkey attracted a huge inflow of foreign capital in the first half of the year despite the Asian crisis but the influx turned to a flight in the second half.

Officials say some $7 billion has left Turkey since end-July, pushing up domestic interest rates.

(Reuters - Yeniyuzyil)

***

INDUSTRY SLOWS DOWN

----------------------------------------------

Because of the stagnancy at markets, the rate of utilization at the manufacturing industry, fell by 4 points over November 1997, falling to 80 %.

The provisional outcome of the survey carried out by DIE (State Statistics Institute) on 627 work places show that the rate of capacity utilization fell to 57.6 % in the manufacturing of transportation vehicles and to 53.4 % in processed leather production.

(Yeniyuzyil,7)

***

CENTRAL BANK FOREIGN CURRENCY RATES

------------------------------------------------------------------------

***