ERDOGAN: “US WILL PAY THE PRICE IF KIRKUK PLUNGES INTO TURMOIL”
The United States will bear the consequences of ethnic turmoil in Kirkuk if it fails to prevent the oil-rich city from falling under Kurdish control, Turkish Prime Minister Recep Tayyip Erdogan warned yesterday at the Ataturk Airport before he flew out to Davos, Switzerland for the World Economic Forum. “Any wrong move in Kirkuk will have a negative impact on peace in Iraq in the future," Erdogan told reporters at the airport. "The United Nations, the US and the other coalition forces should never allow an unfavorable structure there," he said. "If they turn a blind eye to such a mistake, they will pay the bill in the future." Erdogan then proceeded to Davos to attend World Economic Forum, where he met with foreign reporters on their first day of his visit. Erdogan told reporters that Iraq was becoming an "arena of terrorism" and the violence is unlikely to abate after elections on January 30. He also voiced serious concerns about the upcoming elections, saying, "There will be irregularities in the voting procedure... not all of the population will be able to attend the vote." He stressed that he was particularly concerned by Kirkuk, where the former Kurdish majority is trying to establish control. He voiced strong opposition to oil revenues passing into the hands of Kurds. "All the financial resources of Iraq belong to all the people of Iraq," he stressed. He also added that Turkey was willing to act as a mediator between Israel and Syria, and that Syria had accepted its offer. But he said: "Syria's approval on its own is not enough." He also met with prominent businessmen in Davos, including famous speculator George Soros, and called on them to invest in Turkey. /All Papers/

GUL REITERATES TURKEY’S CONCERN OVER KIRKUK
Spoiling the demographic structure of Kirkuk would be a serious threat for the future of all of Iraq, said Foreign Minister Abdullah Gul yesterday before his departure for Poland to attend a ceremony of the 60th anniversary to commemorate the victims of Auschwitz and its liberation by Russian soldiers near the end of World War II. Expressing Turkey’s concern over the status of oil-rich northern Iraqi city of Kirkuk, Gul said migration of large number of Kurds to the city could destabilize Iraq and pose a security problem for Turkey, adding that Ankara had warned the US and the United Nations about the matter. /Turkiye/

TALAT: “REACHING A CYPRUS RESOLUTION IS VERY IMPORTANT, BUT OUR ISOLATION SHOULD BE BROUGHT TO AN END”
Turkish Republic of Northern Cyprus (TRNC), who is currently in Brussels for an official visit, said yesterday that the Turkish Cypriot side could start a new peace process even before the elections scheduled for Feb. 20. Speaking to reporters, Talat stated that he had met with representatives from the European Union and told them the economic isolation of the TRNC should be brought to an end. “Reaching a resolution on the island is very important,” said Talat. “But our isolation should be ended.” Talat added that the Greek Cypriots should be motivated to engage in a new in a new UN process. /Turkiye/

ARINC MEETS WITH ITALIAN PM, DISCUSSES TURKEY’S EU BID, TERRORISM, AND IRAQ
Parliament Speaker Bulent Arinc, who is currently in Italy for an official visit, yesterday met separately with Italian Deputy Prime Minister Gianfranco Fini and Speaker of the Senate Marcello Pera to discuss a number of issues, including Turkey’s European Union membership bid, terrorism and Iraq. During their meeting, Fini reiterated Italia’s support for Turkey’s EU membership bid. “The majority of the Italian Parliament stands by the Turkish nation,” said Fini. He further stated that he was pleased with the recent pace of the progress in relations between the two countries. /Star/

SARIGUL ANNOUNCES HIS CANDIDACY FOR CHP LEADERSHIP
Just two days before the opposition Republican People’s Party (CHP) congress, Sisli Mayor Mustafa Sarigul yesterday officially announced his candidacy for the party leadership. At a press conference at CHP headquarters in Ankara, Sarigul said, “The loser must leave. I only want to make the CHP the ruling party.” Previous meetings between possible candidates failed to reach an agreement on a single candidate to face CHP leader Deniz Baykal. /Turkiye/

KORUTURK VISITS LONDON
Turkey’s special envoy to Iraq, Ambassador Osman Koruturk yesterday met with British defense and foreign officials to discuss recent situation in Iraq just two days before critical elections in the country. During his talks, Koruturk, reportedly reiterating Turkey’s view on the Iraqi elections and its concern over the status of the northern Iraqi city of Kirkuk. /Turkish Daily News/

THE NY TIMES: “TURKEY READY TO INTERVENE”
The New York Times yesterday reported that Turkey's military is prepared to intervene if post-election clashes erupt in northern Iraq or if Iraqi Kurds try to form an independent state, giving coverage to Deputy Chief of Staff Gen. Ilker Basbug’s recent statement on the latest developments in Iraq. “The general said the military command was closely following events in the ethnically divided northern Iraqi city of Kirkuk, which Iraq's Kurds are eager to control,” the daily wrote. “Turkey fears that the Kurds would exploit a political victory in Kirkuk elections to form their own state, precipitating a breakup of Iraq that could threaten Turkish security.” In related news, the Financial Times commented on Basbug’s statement that he did not elaborate, or suggest that Turkey might intervene in Iraq if Kirkuk were to become a Kurdish stronghold. “But his comments are the most forceful from the powerful Turkish armed forces in some time,” the British daily added. /Hurriyet/

EU COMMISSIONER FOR ENLARGEMENT: “I’M SURE TURKEY’S EU ACCESSION TALKS WILL BEGIN ON OCT. 3”
European Union Commissioner for Enlargement Olli Rehn said yesterday that he was sure that Turkey would begin its European Union accession talks with the European Union on Oct. 3, 2005. “The screening process will be completed before the accession talks,” he added. “Turkey has already signed Customs Union with the Union which is an important issue for the screening process. When Turkey fulfills the legal and political criteria, there will be no more obstacle to the negotiation process.” Touching on the Cyprus issue, Rehn said that the Greek Cypriots also needed to take necessary steps for a resolution on the island. /Cumhuriyet/

RICE, FEIGHT TO VISIT TURKEY
Condoleezza Rice, who took charge as US Secretary of State this week, is scheduled to tour eight European countries including Turkey, and Israel and Palestine next week. State Department spokesman Richard Boucher said yesterday that she would pay visits to Britain, Germany, Poland, Turkey, Israel, West Bank, Italy, France, Belgium and Luxembourg to hold a series of contacts. In addition, US Deputy Secretary of Defense Douglas Feight is set to arrive in Ankara on Monday. He is expected to meet with Foreign Minister Abdullah Gul and top military officials to discuss US desire to use the Incirlik airbase and its concern over Iran’s nuclear power. /Turkiye/

BABACAN: “I’VE ATTENDED MEETINGS IN DAVOS WHERE EUROPE’S FUTURE VISION WAS DISCUSSED”
State Minister for the Economy Ali Babacan, who is currently in Davos, Switzerland to attend the World Economic Forum, said yesterday that he attended meetings in Davos where Europe’s future vision was discussed. “The European Union Constitution, which is expected to be approved by October 2006, monetary and budgetary issues were discussed at these meetings,” Babacan told a press conference. “Europe is expected to grow 2% within the upcoming years but this won’t be enough to reduce high unemployment.” He predicted that Turkey’s budget deficit rate would fall to 3% by next year’s end and that the debt stock would fall to 60% by 2007. /Aksam/

SERDENGECTI: THE CENTRAL BANKER OF THE YEAR
Central Bank Governor Sureyya Serdengecti was named as the “Central Banker of the Year” by the prominent international finance magazine “The Banker.” “Slowing inflation to single digits for the first time in a generation has been one of two key pillars of Turkey’s economic rescue package, the other being strict fiscal discipline,” wrote The Banker. “In concluding a draft agreement to provide a new three-year $10bn loan, the International Monetary Fund described the taming of inflation as one of the major policy successes of the past three years, paying tribute to the independence and effectiveness of the Central Bank of the Republic of Turkey.” /Sabah/