SEZER MEETS WITH UKRANIAN PRESIDENT KUCHMA TO DISCUSS BILATERAL RELATIONS
President Ahmet Necdet Sezer, currently on an official visit to Ukraine, yesterday met with his Ukrainian counterpart Leonid Kuchma to discuss a number of issues. During their talks, the two leaders signed agreements for greater cooperation between their countries. Speaking afterwards, Sezer said that he and Kuchma had discussed both bilateral and regional issues. For his part, Kuchma said that they had discussed integration with the European Union and decided to boost cooperation on the issue. While Turkey is an official EU candidate, Ukraine is signatory to cooperative pacts with the EU with the long-term goal of accession to the Union. “Ukraine is interested in closely studying Turkey’s rich experience in [EU accession],” said Kuchma. “We are convinced that without Ukraine and Turkey, a united Europe will not be truly unified.” Later today, Sezer is expected to visit the Ukrainian peninsular province of Crimea. /Aksam, Interfax/

ERDOGAN, GUL TO ATTEND EU THESSALONIKI SUMMIT
The European Union summit in Thessaloniki (Salonika), Greece began yesterday. During last night’s session, the EU leaders discussed illegal immigration and measures to protect the Union’s borders. Prime Minister Recep Tayyip Erdogan and Foreign Minister Abdullah Gul are set to attend today’s summit meetings for discussions of the recent progress towards membership of a number of candidate countries, including Bulgaria, Romania and Turkey. In the evening, the Turkish leaders will attend a dinner hosted by Greek President Costis Stefanopoulos in honor of the EU leaders. A final declaration to be released at the summit’s conclusion reportedly includes warm messages regarding Turkey’s EU membership bid. Bulgaria and Romania, which are set to join the Union in 2007, as well as Turkey, are to be invited as observers to the Inter-governmental Conference scheduled to begin its work this October in Brussels. Normally, only candidate countries with accession talks scheduled are invited to this conference. The final declaration reportedly also praises Turkey’s ongoing efforts to fulfill EU criteria, due to be evaluated in December 2004, where Ankara’s accession talks could also be scheduled. /All Papers/

PARLIAMENT APPROVES SIXTH EU HARMONIZATION PACKAGE
Parliament yesterday approved the sixth European Union harmonization package, thus taking another landmark step in Turkey’s bid to join the EU. Before the vote, an article was removed from the package which would have allowed foreign observers to monitor Turkey’s elections. In related news, the government is expected to continue preparations on the seventh harmonization package next week. /Aksam/

CABINET DUE TO CONSIDER NATIONAL PROGRAM NEXT WEEK
Turkey’s National Program is expected to be debated at next Monday’s Cabinet meeting. The preamble to the program says that the government is determined to implement the measures contained therein over the next year. Under the 900-page program, the National Security Council (NSC) would take on a more advisory role. Some other articles of the program are as follows: measures would be taken to ensure freedom of the press, members of the judiciary would be briefed on the rulings of the European Court of Human Rights, and anti-torture rules and procedures would be strenghtened. /Milliyet/

ANKARA AGREES TO PAY COMPENSATION TO GREEK CYPRIOT OVER DISPUTED LAND
According to news channel NTV, Turkey’s representative to the European Convention Numan Hazar declared yesterday that Turkey had agreed to pay compensation to a Greek Cypriot citizen who sued Turkey and won at the European Court of Human Rights. Under the ruling, Ankara will pay $700,000 with 8% interest to Titina Loizidou as compensation her former land now situated in the Turkish Republic of Northern Cyprus (TRNC). This decision by Turkey could set a precedent for similar Greek Cypriot cases. Disbursement and compensation for land disputed since the 1974 Peace Operation is a major issue in any Cyprus settlement, as Turkey faces the prospect of owing up to $20 billion in compensation. /Milliyet/

BABACAN: “ECONOMIC AND SOCIAL REFORMS WILL STRENGTHEN OUR STABILITY”
State Minister for the Economy Kemal Babacan said yesterday that economic and social reforms would help to strengthen the nation’s stability. At a London press conference after touting Turkey’s investment climate to British financial institutions and investors, Babacan told reporters that his two-day visit had been very fruitful. He also met with British Chancellor of the Exchequer Gordon Brown and Chief Secretary of the Treasury Paul Boateng. After completing his contacts in London, Babacan returned to Ankara last night. /Turkiye/

FINANCE MINISTER UNAKITAN: “OUR ECONOMY IS ATTRACTING ARAB CAPITAL”
On his ongoing tour of Persian Gulf countries, Finance Minister Kemal Unakitan yesterday held a press conference in Abu Dhabi. Stressing that gulf region investors were willing to invest in Turkey, Unakitan said that during his contacts in these countries, he and an accompanying delegation had had an opportunity to tout progress in Turkey’s economy and its state privatization program. He stated that Arab businessmen were particularly interested in investing in the tourism sector and had asked for streamlined visa procedures. He added that he had high hopes on attracting Arab capital to Turkey, especially in light of Arab investors’ flight from the West over the last two years. /Turkiye/

BAYKAL: “THE CHP WILL CONTINUE TO SUPPORT THE GOVERNMENT ON TURKEY’S EU BID”
We have so far extended firm support to the government in its efforts towards our country’s European Union accession, and we will continue to do so, Republican People’s Party (CHP) leader Deniz Baykal pledged at a press conference yesterday. Following his meeting with Gerd Andres, a German Social Democratic Party deputy and chairman of the German Bundestag’s German-Turkish Relations Commission, Baykal told reporters that Andres had asked him about the military’s perceived role in the country and the upcoming seventh EU harmonization package, one widely expected to address the issue. “We’ll cross that bridge when we come to it,” said Baykal, adding that the CHP had no reservations about the appointment of a non-military official to the National Security Council (NSC) secretary-general post. /Cumhuriyet/

GEN. TOLON: “THERE IS A CAMPAIGN TO ERODE OUR PEOPLE’S TRUST IN THE TSK”
There are forces both in Turkey and without waging an organized, slanderous campaign to erode our nation’s trust in the Turkish Armed Forces (TSK), charged Aegean Army Commander Gen. Hursit Tolon yesterday. Speaking at a military graduation ceremony in Izmir, Tolon said that the same forces were also trying to brand the military as an obstacle to the country’s democratization and EU accession. Tolon further claimed that current discussions about the National Security Council (NSC) were aimed at mis-portraying the body as the top issue in the country’s EU agenda. /Cumhuriyet/

POWELL EXTENDS OFFICIAL INVITATION TO GUL TO VISIT US
US Secretary of State Colin Powell has extended an official invitation to Foreign Minister Abdullah Gul to visit Washington, said Foreign Ministry Undersecretary Ugur Ziyal yesterday during his fence-mending trip to Washington. “Turkish-US relations are on the right track,” stated Ziyal, adding that a US visit by Prime Minister Recep Tayyip Erdogan was also a possibility. Either trip would set a landmark in Turkey’s efforts to repair bilateral relations strained since the Iraq war. Ziyal also stated that Washington had no intentions of abandoning the NATO base at Incirlik near Adana. /Cumhuriyet/

UZAN: “CANCELLATIONS OF POWER STATION CONCESSIONS ARE POLITICAL ATTACKS ON THE GP”
Young Party (GP) head and media mogul Cem Uzan yesterday alleged that the recent government cancellations of concession agreements on two power stations with the Uzan group were deliberate political attacks aimed at “crushing” the GP’s “unanticipated triumph” over the last nine months. “Now that the GP is now capable of challenging the governing Justice and Development Party [AKP], the AKP has moved to prevent the further progress of my party,” charged Uzan. The Energy Markets Regulatory Authority (EPDK) last week cancelled the agreements on the grounds that both stations had violated provisions of their 1998 contracts signed with the government. In related news, the Justice Ministry has moved to launch an investigation into derogatory statements made by Uzan shortly after the cancellations, statements which targeted Prime Minister Recep Tayyip Erdogan. The GP fell short of the parliamentary representation threshold in last fall’s elections, but recent polls have suggested a higher margin of support. /Cumhuriyet/

NEW YORK TIMES: “1,200-1,800 TROOPS OFFERED BY TURKEY FOR PEACEKEEPING, RECONSTRUCTION IN IRAQ”
The United States is talking with dozens of nations, including Turkey, to replace by mid-August some 20,000-30,000 allied troops currently occupying Iraq, The New York Times reported yesterday. During Foreign Ministry Undersecretary Ugur Ziyal’s contacts in Washington this week, said the paper, he offered US officials Iraqi relief aid and other assistance, as well as 1,200-1,800 troops for peacekeeping and reconstruction. “Turkey is now eager to assist us in the reconstruction of Iraq,” said US Deputy Defense Secretary Paul Wolfowitz, one of several top officials who met with Ziyal. /Turkiye/

MARMARAY UNDERWATER METRO CONSTRUCTION TO START NEXT YEAR
Transportation Minister Binali Yildirim said yesterday that the construction of a $2.5 billion Istanbul Strait Tube Tunnel Project (Marmaray) was set to begin next year. Yildirim added that the project was scheduled to be operational in 2008. /Anatolia News Agency/

ISTANBUL TO HOST CLOTHING PRODUCERS’ CONGRESS
Istanbul is due to host the 19th International Apparel Federation (IAF) Congress on next Tuesday and Wednesday. Over 400 domestic and foreign clothing companies are expected to participate in the two-day industry event. /Anatolia News Agency/

TURKEY DEFEATS UNITED STATES IN CONFEDERATION CUP
In its first match against the United States in St Etienne, France yesterday, Turkey emerged victorious with a score of 2-1. Turkey is fighting the opening round group against the US, Cameroon and Brazil. /All papers/

SOURCE: OFFICE OF THE PRIME MINISTER, DIRECTORATE GENERAL OF PRESS AND INFORMATION