Gurel: Turkey's Aim Is To Form A Common Economic Area Between Turkey And T.R.N.C.

ANKARA, Jan 9 (A.A) - State Minister Sukru Sina Gurel said on Wednesday that the aim of Turkey is to form a common economic area between Turkish Republic of Northern Cyprus (TRNC) and Turkey, adding that this was happening.
Speaking in a news conference, Gurel said that efforts to improve the relations and cooperation between Turkey and TRNC are needed more than ever, stressing to the negative conditions caused by the economic, commercial, transportation, communication and sports embargoes imposed on TRNC.
Gurel said that these negative conditions, the Gulf Crisis and the economic developments in Turkey between 1990-1994 disturbed the macro economic balances in TRNC. He said that the period between 1996-1999 was a relatively a recovery process in TRNC due to close cooperation with Turkey.
Gurel said that Turkey donated 40-50 million dollars to TRNC for infrastructure projects and personnel needs since 1974, adding that it also provided a credit worth of 250 million dollars to TRNC.
The economic and political relations between Turkey and TRNC gained a new dimension by the agreement signed in 1997 on formation of a Partnership Council, he said.
The agreement foresees determination of measures directed at financial and economic integration, and partial integration in security, defense and foreign policy, he noted.
State Minister Gurel said that the support of Turkey to TRNC started to increase and diversify after 1997, adding that the economy of TRNC started to improve after 1998.
Gurel pointed out that the economic balances started to be disturbed in TRNC as a result of deviations from the economic programme, adding that a new crisis period started in TRNC with the negative developments in financial and banking sector. Gurel added that Economic Stability Programme started to be implemented in October 2000 in TRNC.
Stressing that Turkey committed to give a credit worth of 350 million dollars to TRNC to be used in three years, Gurel said that the budget deficit of TRNC which is foreseen as 14 trillion liras, has become 75 trillion liras in 2001 and Turkey met this deficit.
Gurel said that support more than as ever was being extended in this critical period to the programme TRNC had put into practice to recover its economy.
''Upon the National Security Council's recommendatory decision, our government has put an action plan into practice to support the TRNC in every field. With this plan, Turkey strongly supports the TRNC's political and socio-economic efforts. This plan has been the most clear expression of importance attributed to relations between the two countries,'' he said.
Noting that the TRNC was hopeful about 2002, Gurel said that the TRNC had targeted a 5 percent growth rate in 2002 and foreseen a 513 trillion 625 billion TL budget expenditures and a 440 trillion 835 billion budget revenues.
Gurel said that it would be possible to close the TRNC's 72 trillion 778 billion TL budget deficit through measures mentioned in transition programme when Turkey's total contribution of 375 trillion TL was taken into consideration.
Stressing that a 100 million U.S. dollars of payment would be made to depositors in 2002, Gurel said, ''state banks should be strengthened this year in order to settle the finance sector on a sound basis. With this respect, some part of receivables of state banks from the state economic enterprises was planned to be paid in 2002. With this objective, a 25-30 trillion TL of source has been allocated.''
Gurel said that they would try to get a definite result in 2002 in order to remove obstacles in front of commercial relations between Turkey and the TRNC.
Noting that a special encouragement model had been put into practice for the TRNC, Gurel said that tourism, agricultural industry, manufacturing, industry, health, education, shipyard repair and high technology projects would be encouraged with this model.
Gurel said, ''it has been calculated that nearly four thousand people will be employed with twenty projects developed for the sectors to be encouraged and there will be almost twelve percent supplementary contribution to the TRNC's gross national product with the investments to be made.''
''This model which will be financed by the Development Bank of Turkey, foresees extension of a 160 million U.S. dollars of loan in next five years. The targeted total investment amount during this process is 265 million U.S. dollars. The Treasury Undersecretariat is preparing a notification on this matter. Under this notification, those incentives in question will be implemented this year,'' he added.
State Minister Sukru Sina Gurel said, ''Turkish private sector should invest in the Turkish Republic of Northern Cyprus (TRNC). Our new encouragement model targets this.''
Holding a press conference, Gurel said, ''the TRNC's economic structure is adequate. Also, the TRNC does not have any deficiency in transportation, energy, communication and in other fields. There is problem only in water. We have been working on a project of a water pipeline between Turkey and the TRNC to solve this problem. The project is expected to be finalized in 2004. When we finalize this project, the TRNC will have enough water to make irrigation. In that case, the TRNC will be able to develop in agriculture and in other indutrial fields.''
''Turkey does not consider the TRNC a separate place. Turkey will continue to support the TRNC in the future. Turkish Cypriots should rely on Turkey. At the same time, they should maintain their struggle by protecting their national identity. I am quite sure that the TRNC would reach its desired place in the international platform,'' he said.
Gurel told reporters, ''unfortunately, Turkish industrialists' interest in the TRNC is not sufficient. Our new encouragement model aims at increasing Turkish businessmen's investment in the TRNC.''
Describing the Turkish Industrialists' and Businessmen's Association (TUSIAD) as a sound organization, Gurel added, ''Turkish government develops Turkey's foreign policy under control of the parliament. No one should make irresponsible statements that can jeopardize our national interests. The Cyprus question is an issue of vital importance in Turkey's foreign policy.''
GUREL: ''WORDS OF VERHEUGEN CONFIRM WHAT WE TOLD TO DATE''
State Minister Sukru Sina Gurel said that if the European Union (EU) continues to take wrong steps about the Cyprus issue, the division in Cyprus will become permanent.
Upon a question in a news conference about Cyprus, Gurel said that the words of EU Commissioner for Enlargement Guenter Verheugen confirmed the things told by the Turkish side to date.
Gurel said that the EU took very wrong steps in Cyprus issue to date, adding that ''if they continue to take these wrong steps, the division on the island will become final, they will cause a serious problem in the East Mediterranean and they will disturb the Turkish-Greek balance.''
Gurel said that EU accepts the Greek Cypriot side as if it is the legitimate government in Cyprus and makes a big mistake, adding that ''EU will see in the end that they will admit the Greek Cypriot side to EU, not TRNC or the whole Cyprus.''
Gurel said that ''even if the EU talks in such a threatening manner, it started to realize the reality. If they continue taking wrong steps, they will admit the Greek Cypriot side as an EU member, but they will divide Cyprus.''
Gurel said that if the EU wants to contribute to the new process in Cyprus, it should prefer to take positive steps rather than voicing threats. ''For instance, the unfair embargo on TRNC which is there since 1995 has to be lifted,'' he added.
Responding another question, Gurel said that the new process started on Cyprus had removed some negative factors that had existed so far, adding that ''some papers prepared by others'' had been presented during the proximity talks held under the supervision of the U.N. Secretary General.
Recalling that TRNC President Rauf Denktas had withdrawn from those talks due to this reason, Gurel said that the United Nations was participating in the new process as observer.
Noting that the sides on the island could come together from time to time, Gurel said, ''what gives hope to us is that these talks are now being held in the right place between the sides in the most appropriate way.''
When asked whether or not the information he had given on the TRNC's economic situation were linked to the new process, Gurel said that it was possible to set up such a connection with the positive result of the talks, but those two issues were far away from each other for now.
Stressing that a solution could be reached through the good intentions of both sides, Gurel said that they were hopeful about the new process.