ERDOGAN DENIES AKP FAVORING YIMPAS HOLDING
Speaking at a meeting of his party yesterday, Prime Minister Recep Tayyip Erdogan strongly denied recent claims that the ruling Justice and Development Party (AKP) had benefited from the resources of YIMPAS Holding and that company officials were being protected by the government, saying that the media was smearing the AKP. "Such claims cannot be made without proof," said Erdogan, adding that the allegations can't hurt his party. Also commenting on arguments over next year's presidential election, Erdogan said that the current Parliament would elect the president when the time comes, meaning next June. /Aksam/

AFRICAN MUSLIM LEADERS MEET IN ISTANBUL
A meeting of religious leaders of Muslim countries and communities in Africa began yesterday with a ceremony held at Istanbul's Dolmabahce Palace. Addressing the opening of the three-day gathering, Turkish Religious Affairs head Ali Bardakoglu said that Islam had made great contributions to the history and civilization of humanity. It is our duty to explore Islam's thought and cultural richness and to convey this to societies worldwide to improve the image of Islam, said Bardakoglu. /Turkiye/

GUL MEETS WITH RUSSIAN FM
Foreign Minister Abdullah Gul, on a visit to Moscow to attend a Black Sea Economic Cooperation (BSEC) meeting, yesterday met with his Russian counterpart Sergey Lavrov. Following the talks, Gul told reporters that two countries' ties in a number of areas were getting stronger. Gul also said that Russia shared Ankara's view that a resolution of the Cyprus issue should be sought through the United Nations. "We never accept Greek maneuvers to shift the issue from the UN to the European Union platform," said Gul. He also stated that he had observed the great willingness of top Russian officials to develop trade ties with the Turkish Republic of Northern Cyprus (TRNC). Gul stressed that trade volume between Turkey and Russia this year so far was over $15 billion and was expected to reach $20 billion by year's-end, adding that the target for 2008 was $25 billion. Furthermore, he added that in the course of hisvisit, he had had the opportunity to have fruitful talks with his Georgian, Romanian and Albanian counterparts. /Turkiye/

CHIEF OF STAFF BUYUKANIT VISITS ATHENS
Chief of General Staff Gen. Yasar Buyukanit arrived in Athens yesterday as the official guest of his Greek Counterpart Gen. Panayotis Hinofotis. Buyukanit will begin his official contacts today and meet with Greek Defense Minister Evangelos Meymarakis. After the official meetings, Buyukanit will visit a monument to Turkish martyrs in the port city of Piraeus. Buyukanit will also host Hinofotis at a dinner at the Turkish Embassy in Athens before leaving Greece on Saturday. /Cumhuriyet/

FLOODS TAKE LIVES, CAUSE SERIOUS DAMAGE
Heavy rain and storms and their subsequent floods have caused serious damage around the country, both in terms of causalities and property damage, resulting in more than 20 deaths in the southeast. Authorities said troops supported by helicopters were searching yesterday for several people who were reported missing across the region. Floodwaters have also killed hundreds of animals and caused widespread damage to houses in several villages. Heavy rainfall and flooding were also affecting Istanbul and the Mediterranean coast. /All Papers/

EP PRESIDENT BORRELL: "IF A COUNTRY DOESN'T ABIDE BY EU CONDITIONS, IT CAN'T BE A MEMBER"
European Parliament President Josep Borrell, currently in Athens, yesterday spoke at the Greek Parliament's European Affairs Committee. Touching on the Cyprus issue and Turkey's European Union membership bid, Borrell said, "The European Parliament insists on respect for the basic principles, criteria and values of the European Union. A candidate country which doesn't accept these conditions can't be an EU member." Stating that this had been clearly conveyed to Turkey, Borrell noted EU Term President Finland's efforts and added, "The European Parliament wants a united Cyprus." /Star/

REHN CALLS TURKISH-EU RELATIONS "SCHIZOPHRENIC"
Speaking to French daily Liberation yesterday, European Union Commissioner for Enlargement Olli Rehn called relations between the EU and Ankara "schizophrenic." Decrying a "vicious cycle" in these relations, Rehn stressed that if Ankara's accession negotiations were suspended, this wouldn't end the cycle. Asked whether Turkey's accession talks should be suspended, Rehn stated that they shouldn't if Ankara fulfills the necessary criteria. He also stressed that the EU should be fair towards Turkey's EU bid. "While we expect Turkey to respect the criteria on freedom of expression and thought, we should keep our promises to Ankara." Rehn added that EU Term President Finland was working hard to implement the Ankara Protocol and end the isolation of the Turkish Cypriots. /Milliyet/

MEP WIERSMA: "ARTICLE 301 NEEDS TO BE CHANGED"
Jan Marinus Wiersma, a member of the Socialist group in the European Parliament visiting Turkey to meet with Prime Minister Recep Tayyip Erdogan and chief European Union negotiator Ali Babacan, yesterday said that his most important message was to tell why Article 301 of the Turkish Penal Code (TCK) should be changed. "There are articles like 301 in many EU countries, but they don't use these laws like Turkey does," he said. "Turkey has two options before it: Either change the mentality of prosecutors and judges, or the law itself. Even if you educate judges and prosecutors, there will be people who want to use Article 301 for bad ends." Also touching on the Cyprus issue, Wiersma said that they were trying to find a formula to open the Turkish Republic of Northern Cyprus' (TRNC) Ercan Airport at least to tourist flights. /Star/

IMF'S LIPSKY: "TURKEY SHOULD MAINTAIN FISCAL DISCIPLINE, STRUCTURAL REFORMS, AND LOW INFLATION FOR CONTINUED SUCCESS"
After completing his contacts in Istanbul yesterday, International Monetary Fund First Deputy Managing Director John Lipsky told reporters that 1.5 points of the 6.5% primary surplus would be obtained from government participation, which is financially weak. He further stressed that Turkey should maintain fiscal discipline, structural reforms, and its low inflation target in order to sustain its economic success. Commenting on the high current account deficit, Lipsky said that the deficit would be sustainable as long as Turkey continues its fiscal discipline. "Fiscal discipline, structural reforms, and the low inflation target are important," added Lipsky. /Milliyet/

COSKUN: "RED TAPE AND INDUSTRIALISTS' PROBLEMS HAVE PERSISTED UNDER THIS GOVT"
Speaking at the Fifth Industry Conference yesterday, Industry and Trade Minister Ali Coskun said that over the last four years the government has been unsuccessful in cutting red tape and ending the problems of industrialists, adding that industrialists' competitive edge has also not improved very much. "The bureaucratic hurdles should be eliminated," added Coskun. /Sabah/