GERMAN FOREIGN MINISTER FISCHER MEETS WITH GUL
German Foreign Minister Joschka Fischer yesterday met with his Turkish counterpart Abdullah Gul. In a joint press conference, Fischer praised Turkey’s recent reforms, but pointed to the need for further progress on human rights. Underlining that a resolution of the Cyprus issue would positively influence Turkey’s European Union membership bid, the visiting top diplomat pledged that Germany would do whatever it could to help Ankara’s efforts. For his part, Gul said that after this Friday’s National Security Council (NSC) meeting, the government would put the final touches on its Cyprus plan. Stressing that Ankara supported UN Secretary-General Kofi Annan’s goodwill mission and that his plan had been used by Turkish officials as a basis during their work on the issue, Gul expressed his desire to begin talks over the island soon. Fischer is set to return to Berlin today, where he is expected to meet with Greek Foreign Minister George Papandreou. /All Papers/

WORLD ECONOMIC FORUM BEGINS IN DAVOS; BABACAN, ERDOGAN SET TO ATTEND
State Minister for the Economy Ali Babacan yesterday flew to Davos, Switzerland to attend the World Economic Forum, which is scheduled to last through this weekend. Prime Minister Recep Tayyip Erdogan is also to travel to Davos tomorrow to attend the meeting and to address its participants. Talks at Davos are set to focus on a number of issues, including Greek Cyprus’s upcoming European Union accession and the island’s future, world trade, Iraq, and measures to fight famine. Some 30 heads of state, 75 state ministers and 28 religious leaders are expected to attend the meeting. In related news, following the summit’s end on Sunday, Erdogan is set to travel to the United States for a five-day official visit. /Turkiye/

ARINC: “AUSTRIA VIEWS TURKEY’S EU BID POSITIVELY”
On the third day of his visit to Austria, Parliament Speaker Bulent Arinc yesterday met with President Thomas Klestil. Speaking to reporters later, Arinc said that in talks with him Austrian officials had shown a positive stance towards Turkey’s European Union membership bid. He added that the two sides had worked to strengthen bilateral relations. After completing his official contacts, Arinc and his accompanying delegation visited the nation’s Military Museum and National Library and then attended a performance at the Vienna Opera House. /Turkiye/

US CYPRUS ENVOY WESTON VISITS ANKARA
US State Department Cyprus Envoy Thomas Weston accompanied by US Ambassador to Ankara Eric Edelman met yesterday with Foreign Ministry Undersecretary Ugur Ziyal. Afterwards, Weston said that their talks had helped to lay the groundwork for a series of upcoming meetings on the Cyprus issue. Ziyal reportedly conveyed Ankara’s determination to resolve the issue, adding that sacrifices towards this end should not be expected from Turkish Cyprus alone. /Turkiye/

DENKTAS: “THE TURKISH CYPRIOTS WANT A RESOLUTION, BUT THE GREEK CYPRIOTS MUST FEEL THE SAME”
Turkish Republic of Northern Cyprus (TRNC) President Rauf Denktas said yesterday that the Turkish Cypriots clearly wanted a resolution on the island, adding however that the Greek Cypriots also needed to want this. In related news, TRNC Prime Minister Mehmet Ali Talat said yesterday that his Turkish counterpart Recep Tayyip Erdogan, who is to travel to Washington on Sunday for an official visit, would seek US President George W. Bush’s support for restarting negotiations over the island. /Aksam/

PAKISTAN’S MUSHARRAF: “THE OIC SHOULD SPEARHEAD REFORMS IN THE MUSLIM WORLD”
Speaking yesterday at an Istanbul luncheon in his honor sponsored by the Turkish-Pakistani Business Council, Pakistani President Pervez Musharraf stated that the Organization of the Islamic Conference (OIC) should work to spearhead reforms in the Muslim world, which he said itself needed to undergo radical changes in order to catch up with the West. Pointing out that Istanbul is scheduled to host an OIC foreign ministers’ meeting this May, Musharraff suggested forming a committee at that gathering to govern reform efforts inside the OIC. He added that the trade volume between Turkey and Pakistan was not up to its potential. Saying that Ankara and Islamabad enjoyed historical and cultural ties, he urged a strengthening of commercial relations. “My government has tried to facilitate investments, but the main role in this regard has been played by the private sector of both countries,” added Musharraf, issuing a call for Turkish businessmen to take advantage of the opportunities his country offers. /Sabah/

IMF: “ANKARA HAS PLEDGED TO COVER THE BUDGETARY COSTS OF PENSION AND MINIMUM WAGE INCREASES”
An International Monetary Fund delegation headed by Turkey Desk Chief Reza Moghadam yesterday completed the first stage of the seventh review of the nation’s economic program. The delegation assessed the budgetary outlook as well as the measures needed to cover the cost to the budget of recent pension and minimum wages increases. Ankara stressed that it remains committed to the 6.5% of gross national product (GNP) primary surplus target and is furthermore ready to take all necessary steps to achieve this goal. “The government has decided to cut discretionary spending by 10% to broadly cover the budgetary costs of pension and minimum wage increases and is reviewing a range of options to address the projected revenue shortfall,” said IMF Turkey Representative Turkey Representative Odd Per Brekk in a written statement. “In this regard, attention is being paid to the quality and sustainability of fiscal adjustment.” Discussions with the delegation also focused on the financial sector supervisory and legal framework as well as steps needed to further improve government expenditure management and revenue collection, and to accelerate privatization. Moghadam yesterday left Turkey, but a follow-up delegation is expected to return to the country next month. /Sabah/

FINANCE MINISTER: “WE WILL BOTH CUT TAXES AND BOOST BUDGET REVENUES”
Finance Minister Kemal Unakitan said yesterday that the government was doing its best to avoid imposing new taxes and price increases. “We will both reduce taxes and increase budget revenues,” pledged Unakitan. He stated that the government’s policy was aimed at achieving a 6.5% primary surplus. Touching on the nation’s economic program with the International Monetary Fund, Unakitan said that the IMF’s reviews would continue through year’s-end. /Milliyet//

IRISH FOREIGN MINISTER: “AFTER TURKEY COMPLETES THE COPENHAGEN CRITERIA, IT COULD JOIN THE EU”
Irish Foreign Minister Brian Cowen said yesterday that Turkey could join the European Union after it has fulfilled the Copenhagen criteria. Ireland currently holds the EU’s term presidency. Also touching on the Cyprus issue, Cowen stated that United Nations Secretary-General Kofi Annan is to decide when new negotiations over the island would begin. /Turkiye/

AGAR: “A SOLUTION PROCESS HAS BEGUN FOR CYPRUS”
True Path Party (DYP) leader Mehmet Agar accompanied by a party delegation yesterday visited the Istanbul Chamber of Commerce (ITO). Following his meeting with ITO Chair Mehmet Yildirim, Agar criticized the government, charging that it was waiting until after the spring local elections to impose price increases. “Everybody knows that following the local elections, we will see huge increases in prices and taxes,” claimed Agar. Stressing that a process to resolve the Cyprus issue had begun, Agar warned the government that it must protect Turkey’s rights and interests. /Turkiye/