ANKARA - These are some of the major headlines and their summaries in Turkish press on July 01, 2004. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.

HURRIYET (LIBERAL)
------------------
EDUCATION BUDGET EXCEEDED DEFENSE BUDGET FOR THE FIRST TIME
The government, which made a surprise and reduced the amount of defense budget, is preparing for a reduction in the number of soldiers as well.
National Defense Minister Vecdi Gonul told Hurriyet that they made four quadrillion Turkish Liras of reduction in defense budget this year and added that planning of Turkish Armed Forces envisioned a reduction in the number soldiers as well. When asked which units will be removed, Gonul said that this is planned by General Staff and it will be announced when its time comes.
BALKENENDE: WE WILL TREAT JUSTLY TO TURKEY
Prime Minister Jan Peter Balkenende of the Netherlands, which will take over the European Union (EU) Term Presidency from Ireland today, said that they would treat justly to Turkey. Balkenende, who spoke to reporters yesterday in The Hague, said that discussions on whether or not Turkey was European were left behind. He added that they should act honestly to Turkey, noting that the rules of the game are clear.

MILLIYET (LIBERAL)
------------------
WORLD RECEIVED THE MESSAGE
Journalists, who evaluated the NATO Summit, underlined the place which U.S. President George W. Bush chose to deliver a speech after the Summit. The journalists described Bogazici Bridge, which was seen on background during the speech of Bush, as the bridge that unites Asia and Europe. They also described Galatasaray University as the symbol of religious tolerance and a law school rooted in Ottoman period.

GUARANTEE FROM GUL TO EUROPE
Turkish Foreign Minister Abdullah Gul said that if the European Union (EU) does not accept the membership of Turkey, then it will lose its persuasiveness. He said that if Turkey's membership was accepted, a migration from Turkey to Europe would not start, furthermore Turkish people who are living in Europe would return to their country.

SABAH (LIBERAL)
---------------
TURKEY BREAKS RECORD IN GROWTH RATE
Turkish economy grew by 12.4 percent in the first three months of 2004. The growth rate of Gross Domestic Product has become 10.1 percent. Thus, Turkey, together with China, owned one of the two economies of which Gross National Product grows continuously during the last nine periods. Turkey's growth mainly depended on import.

GUL: IF EU DOES NOT GIVE A DATE, IT WILL LOSE ITS PERSUASIVENESS
Turkish Foreign Minister Abdullah Gul said that Turkey fulfilled Copenhagen criteria and added that all European leaders can see this. Gul said that Turkey does not feel uncomfortable but it answered the questions which have been asked for 40 years. Gul delivered a speech at the closure session of ''Istanbul Pan-Atlantic Student Summit'' and he said that he hoped the European Union (EU) would start membership negotiations with Turkey following the progress report that will be announced in October.

CUMHURIYET (LEFT)
-----------------
EUROPE ALSO FELT COMFORTABLE
As the verdict of the European Court of Human Rights (ECHR), which will constitute a precedent and which considered correct the ban on headscarf at Turkish universities , also aroused the interest of many European countries, especially France and Germany. French newspapers interpreted the verdict as ''ECHR has decided in favor of secularism''. Also the French government, which bans headscarf and religious symbols at schools felt comfortable over the verdict. On the other hand German newspapers indicated that the headscarf issue gained a new dimension.

FRATTINI: TURKEY FULFILLED ITS RESPONSIBILITIES
Italian Foreign Minister Franco Frattini stressed that Italy considers Turkey's European Union (EU) membership positive and within the interests of Europe. He said that they could not imagine the enlargement of Europe which does not include a promise to Turkey. He added that Turkey has fulfilled its responsibilities to reach the goal.

RADIKAL (LEFT)
--------------
EDUCATION IS OBLIGATORY
Turkish Interior Minister Abdulkadir Aksu agreed with the reactions against harsh intervention of police in NATO demonstrations and said that it was a wrong act and it bothered him as well. On the same subject Istanbul Governor Muammer Guler said that those kinds of problems will be overcome by giving better education to policemen.

VERDICT OF ECHR ANGERS AK PARTY
The verdict of European Court of Human Rights (ECHR), which considered correct the ban on headscarf at universities, angered Justice and Development Party (AK Party). State Minister Cemil Cicek said that even though they did not like it, they had to comply with the verdict.

TURKIYE (RIGHT)
---------------
RECORD IN GROWTH RATE IN TURKEY
Following the increase in industrial production and capacity utilization, Turkish economy has reached a record growth in the first three months of 2004. The growth rate, which was expected to be 8 percent, is announced as 12.4 percent. The rate was 5.9 percent annually in 2003.

GUL: WE CONTINUE WITHOUT EU, IF IT DOES NOT ACCEPT TURKEY
Turkish Foreign Minister Abdullah Gul said that Turkey fulfilled all the conditions required for membership to the European Union (EU). He added that if the EU does not accept Turkey as a member, it will not be the end of everything and Turkey will continue on its own path.

ZAMAN (CONSERVATIVE)
--------------------
ERDOGAN THANKS TO PEOPLE OF ISTANBUL
Turkish Prime Minister Recep Tayyip Erdogan thanked the citizens on behalf of Foreign Minister Abdullah Gul, Istanbul Governor Muammer Guler and Istanbul Security Director Celaleddin Cerrah as NATO Summit was completed successfully. He also thanked especially to citizens living in Ankara and Istanbul for their patience.

COMFORTING MESSAGES FROM NEW EU TERM PRESIDENT
The European Union (EU) Term Presidency, which will have an important say in giving Turkey a negotiation date, will be transferred from Ireland to the Netherlands today. The Netherlands presidency will last for 6 months. Prime Minister Jan Peter Balkenende of the Netherlands said that it was necessary to be just and objective on starting negotiations with Turkey. He said that he would harshly oppose demanding additional criteria from Turkey at the last moment.

(GC-ULG) 01.07.2004