GUL: “FOR ITS OWN CREDIBILITY, THE EU SHOULD KEEP ITS PROMISE TO END THE TRNC’S ISOLATION”
Foreign Minister Abdullah Gul yesterday met with visiting Turkish Republic of Northern Cyprus (TRNC) Prime Minister Mehmet Ali Talat and Foreign Minister Serdar Denktas to discuss recent developments on Cyprus. Speaking afterwards, Gul said that the European Union should keep its promise to end the international isolation of the TRNC, a move he said was very important for the Union’s credibility. “We believe that the EU should make concrete decisions this September on ending the isolation of the TRNC,” added Gul. “Although the Turkish Cypriots accepted the UN plan at last April’s referendums while the the Greek Cypriots rejected it, the EU hasn’t yet met the TRNC’s expectations.” For his part, Talat said that the EU’s possible decision next month could be pivotal in its stance on the issue. In related news, TRNC Prime Minister Mehmet Ali Talat sent a letter to UN Secretary-General Kofi Annan last week expressing his concerns about developments in the wake of the referendums. /Turkiye/

ALPOGAN: “WE’RE DETERMINED TO ADVANCE TURKEY'S EU BID”
Ambassador Yigit Alpogan, the newly appointed first civilian secretary-general of the National Security Council (NSC), said yesterday that Turkey is determined to attain European Union membership. “The NSC will fulfill its duty for Turkey’s EU membership bid,” added Alpogan. “Ankara has met the EU’s requests for its membership and therefore we have the right to expect the EU to keep its promise.” Alpogan also said that Turkey’s membership wouldn’t be a “present” from the EU but would rather be in the Union’s own interest. /Hurriyet, Star/

JOINT PROJECTS, OIL AND SECURITY CONCERNS DOMINATED IRAQI HEAD’S VISIT
Speaking at a press conference yesterday following Iraqi President Ghazi al-Yaver’s visit, State Minister for the Economy Kursat Tuzmen said that Ankara and Baghdad had short-, medium-, and long-term projects planned and that Turkey hoped to further boost trade ties with Iraq. Tuzmen said that during al-Yaver’s visit, Ankara’s proposals to take part in operating Iraqi oil fields through the Turkish Petroleum Corporation (TPAO) had been discussed. “We conveyed our request to the visiting Iraqi officials for the development of the Gharraf oil field by the TPAO under Iraq’s postwar production model,” said Tuzmen. He also stressed that measures to provide for the safety of Turkish truckers in Iraq were also discussed during al-Yaver’s visit. /Milliyet/

US EMBASSY: “IN ITS FIGHT AGAINST THE PKK, TURKEY HAS HAD NO BETTER FRIEND THAN WASHINGTON”
Recent reports in the Turkish press alleging that the US has turned a blind eye to the activities of the terrorist group PKK in northern Iraq are untrue, the US Embassy in Ankara yesterday told Turkish officials. A written embassy communiqué stressed that the United States, unlike European countries, has long considered the PKK and its successor organizations as terrorists and is actively engaged in efforts to restrict its activities. The US also issued a press release on Monday stating that Turkey has had no better friend in its struggle against the PKK. “The United States will continue to work with Turkish and Iraqi authorities to eliminate the PKK threat from Iraq,” the statement added. /Star/

TURKISH HOSTAGE RESCUED IN IRAQ
Foreign Minister Abdullah Gul said yesterday that Turkish truck driver Mustafa Koksal, who was abducted in Iraq several days ago, has now been rescued. Gul said that Koksal is on the way back home to Turkey, but that his co-driver Durmus Kumdereli is still apparently being held hostage. /Sabah/

CB REPORT WARNS OF RISKS IN INFLATION REDUCTION, STRESSES INTEREST RATES COULD GO HIGHER
The Central Bank yesterday released a report on recent economic developments, predicting that the current accounts deficit would be 3.5 or 4% of the gross national product (GNP) by year’s-end. The report stressed that the government should determinedly continue its reforms as well as tight monetary policy. It further warned about some risks in bringing down inflation, adding that interest rates could go higher. /Milliyet/