CEM RESIGNS FROM DSP
Foreign Minister Ismail Cem yesterday resigned from the Democratic Left Party (DSP) and his Cabinet post. Resignations from the senior coalition partner DSP continued yesterday. With these defections, the number of DSP deputies’ resignations from their party officially reached 41, including seven ministers, and the number of the party deputies in Parliament fell to 87. /Hurriyet/

DERVIS WITHDRAWS HIS RESIGNATION
State Minister for the Economy Kemal Dervis yesterday resigned from his position on the Cabinet, but then, upon the request of President Ahmet Necdet Sezer, withdrew his resignation. Dervis reportedly made his decision to resign after a 20-minute meeting with Prime Minister Bulent Ecevit around noon yesterday upon the premier’s request. Following Foreign Minister Cem’s handing in his resignation, Dervis sent a petition to Prime Minister regarding his own resignation. However, when the president learnt about the matter, Sezer called Dervis and requested that he withdraw his resignation, saying that Turkey needs him in a critical period for the economy. In a written statement issued last evening, Dervis said that he had withdrawn his resignation. Meanwhile, Cem is expected to hold a press conference this morning to tell his reasons for resigning and plans for the future. /Turkiye/

YILMAZ: “ANAP WILL DO ITS BEST DURING THIS DIFFICULT PERIOD”
Speaking to reporters yesterday before his departure to Brussels to attend a meeting of the Convention for Europe’s Future, Deputy Prime Minister and Motherland Party (ANAP) leader Mesut Yilmaz stated that Turkey was going through a time of political crisis, but that ANAP was doing its best to protect Turkey’s interests. Yilmaz also said that he would meet with the leaders of political parties next month in order to recall the Parliament for an extraordinary session to discuss laws concerning the European Union. /Star/

BAHCELI MEETS WITH SUPREME BOARD OF ELECTIONS CHAIRMAN
Nationalist Action Party (MHP) leader Devlet Bahceli yesterday met with Supreme Board of Elections (YSK) Chairman Tufan Algan. At the meeting, Bahceli said that his party wanted early elections to be held in November but Algan stated, “We need more time for the renewal of voter registrations, and it would be difficult to be ready for elections by November.” Bahceli stated that the YSK’s needs such as a budget of TL 35 billion and infrastructure services for early elections would be provided. Algan said, “Two months before the elections would not be enough time to get ready for them.” /Milliyet/

POLITICAL TURMOIL FELT IN TURKEY’S FOREIGN RELATIONS
Due to the recent wave of resignations and defections from within one of the senior coalition partners, the Democratic Left Party (DSP), Turkey has lurched into further political turmoil which could hurt the country’s foreign relations. After Foreign Minister Ismail Cem stepped down on Thursday morning, State Economy Minister Kemal Dervis yesterday submitted his resignation but later withdrew it upon the request of President Ahmet Necdet Sezer and Prime Minister Bulent Ecevit. European Union Commission Chairman Romano Prodi has postponed his visit to Turkey scheduled for next Thursday, fearful that the political gap opened by Cem’s resignation could not be filled. Another senior figure in the EU, Commissioner for Enlargement Guenter Verheugen, has also delayed a scheduled visit to the country. According to a statement from the EU Commission, the determination to put off the visits were made with the joint decision of both Turkey and the EU, noting that new dates would be determined as soon as is possible. “Prodi is closely watching the latest developments in Turkey,” said the statement. “He has already conveyed his belief to Turkish officials that despite the recent political uncertainty, the Turkish government would continue its reforms without making any concessions from the country’s targets regarding its relations with the EU.” In addition, United States Assistant Secretary of Defense Paul Wolfowitz is reportedly considering delaying his three-day visit to Turkey scheduled to begin next Monday. /Cumhuriyet/

KAHKONEN MEETS WITH DERVIS
International Monetary Fund Turkey Desk Chief Juha Kahkonen yesterday met with State Minister for the Economy Kemal Dervis and Treasury Undersecretary Faik Oztrak. Kahkonen said that the current political uncertainty was an internal Turkish problem and that the IMF would not intervene in internal affairs. “The IMF will not deviate from the economic program,” Kahkonen added. /Sabah/

US UNDERSECRETARY TAYLOR: “TURKISH REFORMS ARE GOING WELL”
US Undersecretary for International Relations John Taylor said yesterday that the Turkish economy was getting better thanks to the government’s efforts for reforms. Stating that the nation’s real economy was recovering, Taylor said that the reform implemented by State Minister for the Economy Kemal Dervis with great political support were working well. “Turkish finance markets are currently in a state of instability,” he added. “This is due to worries that the crisis which began with Prime Minister Bulent Ecevit’s illness and continued with resignations from the Democratic Left Party (DSP) could endanger Turkey’s $16 billion International Monetary Fund [IMF] program. However, the reforms started by Dervis, who used to work for the World Bank, are fundamentally sound policies. I cannot promise a soft landing from this period, since one cannot discount the effects of political instability. But you should remember that your reforms are good policies, and that they are going well.” /Aksam/

US STATE DEPARTMENT: “WE ARE CLOSELY FOLLOWING RECENT DEVELOPMENTS IN TURKEY”
United States State Department Spokesman Phil Reeker yesterday stated that the US government was closely following recent political developments in Turkey. “Turkey is one of the most important allies of the US as well as the only Muslim country within NATO,” he said. “That’s why we place great importance on Turkey’s domestic politics.” Remarking that the Turkish government had enjoyed success in implementing its economic program, Reeker added, “We expect Turkey to keep its commitment to the economic program. The US will keep an eye on Turkey since we place a high premium on our relations with Turkey.” /Cumhuriyet/

OZILHAN: “ELECTIONS SHOULD BE HELD TO END POLITICAL UNCERTAINTY”
Turkish Industrialists’ and Businessmen’s Association (TUSIAD) Chairman Tuncay Ozilhan yesterday met with Prime Minister Bulent Ecevit. Speaking to reporters after their meeting, Ozilhan said that he had told Ecevit about his worries on issues such as Turkey’s European Union accession process and the current economic program. “Elections should be held to end the political uncertainty,” he said. “If there is a need for early elections a date should be decided as soon as possible, otherwise the economy will be damaged.” He also stated that Ecevit hadn’t specified a date for elections. /Milliyet/

TURKEY ENTERS INTO ADVANCED WARPLANE PROJECT WITH THE US
A signing ceremony at the Pentagon yesterday marked the beginning of Turkey’s official participation in the international Joint Strike Fighter (JSP) project, under which the “warplane of the future” is to be developed. Defense Industry Undersecretary Dursun Ali Ercan signed on the behalf of Turkey, and Peter Aldridge, US deputy defense secretary, signed on behalf of his government. Speaking at the ceremony, Aldridge said, “This is a great day in terms of both Turkish-US relations and the JSF program. Today Turkey begins its participation in the project’s stage of third-level system development and demonstration.” Among the countries which are at the same level of partnership as Turkey are Britain, Canada, the Netherlands, Denmark, Norway and Italy. /Aksam/

INVESTMENT CONSULTATION COUNCIL MEETING CANCELLED
An investment Consultation Council Meeting which was scheduled to be held in Istanbul next Thursday, one that carries great importance for foreign investors in Turkey, has been cancelled due to recent domestic political developments. The meeting was organized on the initiative of World Bank President James D. Wolfensohn, while International Monetary Fund Executive Board Director Horst Kohler and the heads of large international companies were invited to attend. /Turkiye/

EUROPEAN TEXTILE GROUP ANNOUNCES SUPPORT FOR TURKEY’S EU BID
An important European clothing and textile group took a firm stand yesterday in favor of Turkey’s European Union membership bid. Filiep Libeert, chairman of the European Apparel and Textile Organization (Euratex), announced the group’s support at a press conference in Istanbul. Libeert, who is in Turkey as a guest of domestic professional groups, said that the Turkish textile and ready-wear clothes industries were important for Euratex and the 15 EU members, all of which are represented in the group. A letter this month from Euratex to the EU Commission asked that Turkey’s EU bid be expedited, he said. “Everybody within Euratex stands fully behind Turkey on this issue,” Libeert added. “We favor Turkey’s EU membership in the shortest time possible. We’re ready to do whatever we can towards this end. We want you to join us.” /Aksam/

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