ERDOGAN: “WE DON’T WANT TO RAISE TENSION IN OUR COUNTRY”
Prime Minister and ruling Justice and Development Party (AKP) leader Recep Tayyip Erdogan yesterday continued campaigning for March 28 local elections in the central Anatolian cities of Afyon and Eskisehir. Speaking to packed campaign rallies, Erdogan said that his government didn’t want to raise tension in Turkey. “We must ensure peace and unity in our country,” said the premier. “Don’t pay any heed to those trying to sow the seeds of separation among us.” Pointing to the historic single-digit inflation rate announced this week, Erdogan touted his government’s success during its 18 months in power. /Turkiye/

DENKTAS: “I COULD QUIT NEGOTIATIONS TO CAMPAIGN AGAINST THE UN PLAN”
Addressing an Ankara Chamber of Commerce (ATO) conference yesterday, Turkish Republic of Northern Cyprus (TRNC) President Rauf Denktas said that his point of view on the United Nations Cyprus plan hadn’t changed, adding that if there was a deadlock in the current negotiations, he could walk away to campaign against the plan’s acceptance in an April referendum. “We want to get certain changes in the plan,” stated Denktas. “If we’re unable to get them, then we will urge the nation to reject the plan in the referendum.” The plan in its current form would mean the “destruction of the Turkish Cypriots,” Denktas charged. He added that he was opposed to pressure on the island’s two sides to reach a resolution by May, as doing so would be difficult. Greek Cyprus is scheduled to join the European Union on May 1. /Cumhuriyet/

DENKTAS MEETS WITH ERDOGAN, GUL TO DISCUSS NEGOTIATIONS
Visiting Turkish Republic of Northern Cyprus (TRNC) President Rauf Denktas yesterday met separately with Prime Minister Recep Tayyip Erdogan and Foreign Minister Abdullah Gul to discuss the ongoing negotiations over the island. Speaking after meeting with Gul, Denktas said that he would do his best to reach a resolution by May, when Greek Cyprus is scheduled to join the European Union. Denktas complained of the Greek Cypriot administration’s “intransigence” in rejecting all his propoed changes to the United Nations Cyprus plan. For his part, Gul said that the two sides were trying to reach an agreement in light of the realities of the island, adding that doing so by May was their aim. In related news, later, appearing on television after his meeting with Denktas, Erdogan called his meeting with Denktas “very positive.” He also charged the Greek Cypriots with a failure to negotiate in good will, adding that the TRNC would never retreat on certain “sine qua non” issues. /Aksam/

TALAT: “AVOIDING INTERCESSION BY ANKARA AND ATHENS WILL BE DIFFICULT”
Turkish Republic of Northern Cyprus (TRNC) Prime Minister Mehmet Ali Talat warned yesterday that negotiators on Cyprus reaching an agreement on all issues by March 22, when Ankara and Athens are due to intercede, would be quite difficult. “I believe that we will agree on some issues, but not all, by that target date,” added Talat. /Aksam/

PACT SIGNED FOR WATER SALES TO ISRAEL
Following two years of negotiations between Turkey and Israel, Foreign Ministry Undersecretary Ugur Ziyal and his Israeli counterpart yesterday signed an agreement to sell water from Turkey’s Manavgat River to Israel. Under the agreement, 50 million cubic meters of water will be transported annually to Israel over a 20-year period. /Turkiye/

TURKISH TRADE DELEGATION VISITS SYRIA
State Minister Kursad Tuzmen accompanied by a delegation of 200, including deputies, bureaucrats and businessmen, yesterday traveled to Syria. Before his departure, Tuzmen told reporters he hoped to discuss bilateral economic ties with Syrian officials, with an eye towards strengthening them. The delegation is expected to meet with President Bashar al-Assad and Prime Minister Mohammed Naji Otari as well as other high-level officials. /Turkiye/

COSKUN: “INVESTMENTS IN TURKEY WILL RISE”
The months and years to come see a rise in investments in Turkey, predicted Industry and Trade Minister Ali Coskun yesterday. Speaking at the 18th International Optical Products Fair in Istanbul, Coskun said that after the righting of macroeconomic balances in 2003, this year would be one of rising investments. Referring to the chronic crises of years past, he added, “We’ve overcame most of the hurdles [of these crises], and we’re determined to tackle the others.” /Turkiye/

TOBB CHAIRMAN URGES MORE INVESTMENT IN UNDERDEVELOPED REGIONS
Turkish Union of Chambers and Commodities Exchanges (TOBB) Chairman Rifat Hisarciklioglu yesterday urged increased investments in Turkey’s less-developed regions. “We need to invest more in provinces where per capita income is under $1,500,” said Hisarciklioglu. “But first we need to draw up a strategy for boosting these investments.” /Milliyet/

PACT SIGNED FOR 250 MILLION EURO EIB LOAN TO TURKISH SMEs
European Investment Bank (EIB) President Philippe Maystadt and State Minister Ali Babacan yesterday signed an agreement for the EIB to lend 250 million euros to the Turkish private sector and small- and medium-sized enterprises (SMEs). Babacan said that the loan would be distributed through the Turkish Industrial Development Bank (TSKB), Vakifbank, the Turkish Development Bank (TKB), Halkbank and Ziraatbank. /Hurriyet/

WB’S VORKINK: “IF ASKED BY ANKARA, WE COULD ASSIST IN JUDICIAL REFORM EFFORTS”
World Bank Turkey Director Andrew Vorkink yesterday said that the WB might provide financial and technical assistance to Turkey’s judicial reforms if Ankara requested it. Stressing that anti-corruption efforts and establishing transparency were both very important for establishing a robust and efficient business environment, Vorkink added that the WB was ready to provide assistance to the Turkish government in these areas. He also stated that the WB had never insisted on the privatization of state banks but rather had presented Ankara with a number of options for overcoming major hurdles in the banking sector, only one of which was privatization. /Hurriyet/

US PREPARES $250 MILLION AID PACKAGE FOR CYPRUS
An initiative is underway in Washington to revive an aid package for Cyprus which was first discussed over 15 years ago, when President Ronald Reagan was in office. The proposal never went forward at that time since an agreement on the island was lacking. But recently the US House of Representatives resurrected the proposal, which envisages a $250 million grant for use in Cyprus’ “peace and restructuring” process. In addition, Special US Cyprus Envoy Thomas Weston has also signalled that Washington is ready to provide financial assistance to the Cyprus peace process. /Turkiye/