PRESIDENT RATIFIES BANKING LAW
President Ahmet Necdet Sezer yesterday ratified the banking law after having vetoed last month, but attached a series of warnings and advisement, which he wants to be considered in the implementation of the key legislation. The president suggested that the government should work to recapitalize the banks using an approach stressing transparency. /Sabah/

ECEVIT: "PEACEFUL DIVERSITY IN THE BALKANS MUST BE PROTECTED"
Turkish Prime Minister Bulent Ecevit yesterday made a speech at a conference held by the Bulgarian-Atlantic Club in Sofia. Remarking that huge socioeconomic differences between rich and poor might lead to new global crises, Ecevit expressed his wish for peace and stability in the Balkans. "Positive developments such as globalization and technological advances promise a better future for the whole world," said Ecevit. "Today the winds of democracy are sweeping across a number of countries which have been long deprived of human rights and freedoms many years. However, humanity still faces complex problems. As income remains unequally distributed across the nations and as the gap in income between rich and poor countries has recently widened, new threats to world peace are likely to emerge in the future." Stating that most countries faced some problems of ethnic violence, Ecevit said that the Balkans was one region in particular which had been forced to stare down this specter from the past. "However, today the situation is changing. Multi-national, multi-cultural and multi-religious structure of the Balkans must be protected at all costs." After completing his meetings in Bulgaria, Ecevit returned to Turkey yesterday. Speaking to the media at Esenboga Airport, Ecevit underlined how Turkey and Bulgaria had managed to achieve a firm cooperation in the interests of the long-term peace and stability in the Balkans. /Cumhuriyet/

COALITION PARTNERS AT LOGGERHEADS OVER HARMONIZATION LAWS
Yesterday, Nationalist Action Party (MHP) leader and Deputy Prime Minister Devlet Bahceli said that the MHP would not allow any changes to controversial new amendments to Articles 312 and 159 of the Turkish Penal Code (TCK). Speaking at his party's parliamentary group meeting, Bahceli criticized the stance of another government coalition partner the Motherland Party (ANAP), on Article 312. Although Turkey has recently seen several positive developments towards democracy, Bahceli said, certain circles have gotten fixated on these amendments. Claiming that all countries had similar articles in their penal codes, Bahceli stated that the MHP's aim was not to limit freedom but rather to discourage hatred and provocation among the public. "No one should try to benefit from Turkey's goal of gaining EU membership for his or her own interests," he added. /All Papers/

YILMAZ: "COMPROMISE ON ARTICLE 312 IS POSSIBLE"
Motherland Party (ANAP) leader and Deputy Prime Minister Mesut Yilmaz said yesterday that the proposed EU harmonization laws should be revised and that a compromise between the government coalition partners could be reached on the matter. Talking to the reporters following an Ankara Chamber of Commerce (ASO) meeting, Yilmaz said that he wanted to avoid overheated rhetoric on the issue adding, however, he said, "EU membership is the most important goal both for Turkey and the present government." Stressing that final text of the amendments to Article 312 didn't fulfill the requirements needed for that target, he declared that instead of arguments, Turkey needs to look at the situation in light of its EU goal. /Turkiye/

DENKTAS, CLERIDES DISCUSS PROPOSALS FOR NEW CYPRIOT REPUBLIC
Turkish Republic of Northern Cyprus (TRNC) President Rauf Denktas and Greek Cypriot leader Glafcos Clerides yesterday met again in Lefkosha as part of the direct talks process begun last month to find a settlement for the island. The two leaders reportedly discussed the structure of a proposed joint republic and its functions. /Turkiye/

PKK BANNED IN AUSTRALIA
The Australian government yesterday took measures to ban the activities of the terrorist PKK and other similar organizations, which target Turkey. The government also moved to freeze the assets of the PKK and its supporters. A full list of banned terrorist organizations was published in the Australian Official Gazette yesterday. Australian officials stated that the government was taking action against international terrorism, in line with UN resolutions, which urge its member countries to cut off the financial resources of terrorism. /Cumhuriyet/

REPORT: "BELGIAN PARLIAMENTARIANS MET WITH PKK MILITANTS"
Three Belgian parliamentarians reportedly traveled to northern Iraq on Jan. 6-10 to meet with terrorist PKK leader Abdullah Ocalan's brother, Osman Ocalan. Belgium has been in the news as the country which played the most active role when the EU was preparing a list of terrorist organizations failed to include the DHKP-C and PKK, two groups which threaten Turkey. Meanwhile, allegations have surfaced that Fehriye Erdal, an accused assassin of Ozdemir Sabanci whom Belgium has refused to extradite, has disappeared. /Hurriyet/

TRT OPENS NEW STUDIO IN ISTANBUL
On the occasion of its 34th anniversary of serving the Turkish public, the Turkish Radio and Television Corporation (TRT) yesterday officially opened its new studio in Tepebasi district in Istanbul. Speaking at the opening ceremony, TRT Director General Yucel Yener emphasized that TRT would continue to improve itself without changing its responsible and systematic approach to broadcasting. He added, "Thanks to our diligent TRT workers, our new Tepebasi studio was outfitted with the latest high-tech equipment in record time. It is a perfect place." At the ceremony's conclusion, a chorus of 250 singers gave a two-hour performance. Yilmaz and State Minister Karakoyunlu were among those who enjoyed the concert. /Aksam/

MERAL COULD GO INTO POLITICS WITH NEW PARTY
Turkish Confederation of Labor Unions (Turk-Is) Chairman Bayram Meral said yesterday that nothing could be gained for Turkey merely by complaining about politics and politicians, then signaled his intent to enter the political arena. Speaking to reporters after a press conference to promote the New Consumer Law, Meral said, "Recently our country has been preoccupied with complaining about politicians. However, time for complaints is now over. I intend to go into politics under the roof of a party to carry out vital work to solve our country's pressing problems. As to whether he would work under the wing of an existing party or form a new one, Meral said that he was currently looking into the latter. /Turkiye/

MGK: "IMPROVED TRADE RELATIONS HELP FOREIGN POLICY"
During this week's National Security Council (MGK) meeting, it was resolved that this year Turkey would strive to expand and improve its foreign trade. Turkey's targets and expectations for foreign trade were set out in an MGK declaration. According to the statement, Ankara will place more importance on its bordering neighbors in terms of foreign trade. In addition, one of Turkey's prime targets will be to emphasize industrial goods and act in accordance with the principle of "trade develops foreign policy." State Minister for Foreign Trade Tunca Toskay, who attended the MGK meeting, stressed that Turkey is the least active country in its region in terms of local trade. Toskay said, "One of our targets this year is to increase Turkey's trade with its neighbors, because better economic relations will help our foreign policy as well. Another of our targets is to place more importance on trading industrial goods. During the meeting, we discussed possible ways to increase sales of industrial goods." /Hurriyet/

ENVIRONMENT MINISTER PUSHES ITALY TO TAKE BACK WASTE BARRELS
Spurred on by protests by environmental group Greenpeace over "poisonous barrels" dumped by Italy in the Black Sea, Turkish Environment Minister Fevzi Aytekin has taken action to resolve the situation. Aytekin stated yesterday that he would send a letter to the Italian Environment Ministry and the BASEL Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal Secretariat in order to get 400 poisonous barrels currently near Samsun and Sinop in the Black Sea sent back to Italy. Aytekin said, "I directed the bureaucrats that we must get rid of these barrels. Under the BASEL Agreement, Italy is responsible for taking necessary measures to stop the illegal export of waste materials. The convention says that the barrels are defined as illegal traffic. In addition, the export of illegal waste is forbidden under Turkish law." Stating that it had been 13 years since Italy abandoned the waste barrels in the Black Sea, Aytekin added, "I will find financing so that the barrels can be disposed of in a better way. However, we would like Italy to accept its fault and dispose of the barrels because it is their humanitarian responsibility." /Aksam/

CAPA AND CERRAHPASA HOSPITALS TO BE MODERNIZED
It was announced yesterday that Istanbul's Capa and Cerrahpasa hospitals, which treat nearly 100,000 patients each day, would be modernized with an investment of $100 million. Istanbul University Rector Kemal Alemdaroglu said that the university had received permission from the State Planning Organization (DPT) and Finance Ministry for the modernization project. "These skyscraper-type hospitals will be strengthened to be earthquake resistant in a planned five-year project. Of course during this period we will continue to provide service. In preparation for this undertaking, we've held meetings with creditors and exchanged opinions with officials from famous hospitals all over the world." /Sabah/

WORLD BANK TO CONSIDER ADDITIONAL LOAN
The World Bank's Executive Board will meet next Tuesday to discuss granting a $1.3 billion loan to Turkey. If the loan is approved, the funds are expected to be in Turkey by next weekend. Meanwhile, additional financial resources of $1-1.5 billion to support Turkey's banking sector are reportedly also on the WB's agenda. The loan in question is expected to be transferred to Turkey in tranches over three years beginning from June 2002. /Turkiye/

LEBANESE ECONOMIC DELEGATION VISITS TURKEY
Association of Turkish Chambers and Stock Exchanges (TOBB) Chairman Rifat Hisarciklioglu, Association of Lebanese Industrialists Chairman Jacques Sarraf and Lebanese Economic Forum Chairman Wajih Bizri held a press conference yesterday on the meetings that 25 businessmen from the Forum and the Association of Lebanese Industrialists are currently holding in Istanbul through Feb. 4. They emphasized that there was a great deal of opportunity for bilateral cooperation in commerce, mutual investment and contracting services. Hisarciklioglu said, "Turkey is key in terms of opening the doors to Central Asia and Europe. We have high hopes for the project proposing the transportation of Egyptian natural gas from Lebanon to Europe and Turkey. Turkish contractors can have important duties in building the infrastructure in Lebanon. We are determined to improve our bilateral industrial and commercial relations." Bizri stated, "The relations between Lebanon and Turkey are rooted and historical. We are trying to strengthen these relations." /Hurriyet/

IMF TO HOLD MEETING ON TURKEY
International Monetary Fund (IMF) Foreign Relations Director Tom Dawson stated yesterday that Fund's Executive Board was scheduled to hold a meeting on Feb. 4 where the first agenda item would be recent developments in Turkey. Dawson reiterated that the IMF placed a high premium on the nation's new Banking Law and other reforms which the Turkish government is expected to make. /Hurriyet/

SOURCE: OFFICE OF THE PRIME MINISTER, DIRECTORATE GENERAL OF PRESS AND INFORMATION