SEZER: "A STRONG DEFENSE IS VITAL FOR TURKEY"
President Ahmet Necdet Sezer stated yesterday that Turkey had both the ability and the need to maintain a strong defense. Delivering the convocation address to the graduation ceremony at Istanbul's War Academy Commandership, Sezer said that uncertainty and threats on the international scene necessitated a strong defense on Turkey's part. "Our shipyards are fully capable of producing the world's most modern ships and submarines," he added. Also present at the ceremony were Prime Minister Bulent Ecevit, Parliament Speaker Omer Izgi, Deputy Prime Minister and Foreign Minister Sukru Sina Gurel, Defense Minister Sabahattin Cakmakoglu, Interior Minister Rustu Kazim Yucelen and Chief of the General Staff Gen. Huseyin Kivrikoglu. In his speech to the academy graduates, Kivrikoglu stressed the need for a strong naval force. This year 390 students graduated from the War Academy Commandership. /Hurriyet/

ECEVIT: "EARLY ELECTIONS MAY DELAY PASSAGE OF EU HARMONIZATION LAWS"
Prime Minister Bulent Ecevit answered journalists' questions yesterday at Esenboga Airport before his departure for Istanbul to attend a National Security Council (MGK) meeting. Ecevit said that next week after Parliament makes a decision on early elections, work on Turkey's European Union harmonization laws might be delayed. Stressing that his party, the Democratic Left Party (DSP), had worked hard to push forward Turkey's accession to the full EU membership, Ecevit said, "Unfortunately, many circles are insistent on holding early elections. The DSP has been against them from the beginning. The government has been working on reforms for our EU membership bid. When all those are completed, this will be a great step forward for us. However, this opportunity seems to have been lost." Regarding rumors that State Minister Kemal Dervis will leave the government at the beginning of August, Ecevit said, "We have nothing to do if he prefers to serve in a different party. We will continue our duty." He also predicted that the DSP would emerge the winner in coming elections. /All Papers/

MGK CONVENES
The National Security Council (MGK) chaired by President Ahmet Necdet Sezer held its July ordinary meeting in Istanbul yesterday. During the approximately four-hour meeting, the MGK discussed domestic and regional developments and a possible US operation in Iraq. Absent at the gathering were State Minister for the Economy Kemal Dervis, who is currently in the US, and Deputy Prime Minister Mesut Yilmaz, who was in Rize to inspect damaged caused by recent floods in the region. /All Papers/

CEM: "THE YT IS SECOND TO NONE ON EU ACCESSION"
Stating that no one needed to vouch for his credentials on Turkey's European Union accession bid, New Turkey (YT) leader Ismail Cem said yesterday that he was only trying to head off exploitation of the mother tongue languages issue. Speaking to journalists, Cem criticized Motherland Party (ANAP) leader Mesut Yilmaz as trying to claim sole ownership of the EU issue. Cem denied recent media reports indicating that the YT opposed certain EU accession measures. "These reports are regrettable," he stated. "Our path is clear. As I have said before, the YT is second to none in the support for going forward with Turkey's EU bid. I've told Mr. Yilmaz this as well. We will support whatever approach will be the most fruitful." /Cumhuriyet/

NEW TURKEY PREPARES FOR DERVIS
According to information leaked by diplomatic sources, State Minister for the Economy Kemal Dervis, who is currently visiting the United States, has sent a message to New Turkey (YT) Chairman Ismail Cem and former Deputy Prime Minister Husamettin Ozkan indicating that he was ready to resign from his post and join their newly established movement. Dervis, who is expected to return to Turkey next Tuesday, will reportedly submit his resignation to Prime Minister Bulent Ecevit on Wednesday in Ankara. After he steps down, Dervis is expected to put together a team within the YT consisting of representatives from various occupational organizations and business groups. /Milliyet/

DEATH TOLL INCREASES IN FLOOD DISASTER; EMERGENCY AID GRANTED
Heavy rains across the Black Sea region and central-eastern Anatolia this week have taken at least 33 lives while scores of other people are missing. Hundreds of homes have been flooded and livestock killed, and many farmers' fields were ruined. Rescue teams are continuing to search for people in the wreckage. Following the disaster, many politicians and ministers have travelled to the Black Sea region, and especially to Rize. In addition to Deputy Prime Minister Mesut Yilmaz, Justice and Development Party (AKP) leader Recep Tayyip Erdogan yesterday arrived in Rize, the province hardest hit by severe floods. Yilmaz stated that the damage was extensive, and that TL 500 billion had been granted to the Rize governor in emergency aid. /All Papers/

NAVAL FORCES CONDUCT ASSET HANDOVER CEREMONY
The Naval Forces Commandership yesterday held a handover ceremony in Golcuk to mark its purchase of five ships, seven boats, two helicopters and an airplane for its army from France and the United States. Speaking at the ceremony, President Ahmet Necdet Sezer said, "I am very proud to see our Naval Forces reach such a distinguished point." /Turkiye/

SUPREME COURT CHIEF JUSTICE OZKAYA: "THE DEATH PENALTY SHOULD BE ABOLISHED"
Speaking to the Anatolia News Agency yesterday, Supreme Court of Appeals Chief Justice Eraslan Ozkaya laid out his views on Turkish-European Union relations, underlining that Turkey should do its utmost to become a full EU member. Stressing his belief that solutions which would damage neither Turkey's territorial integrity nor its democratic regime could be found to certain sensitive issues such as education in Kurdish and ending the death penalty, Ozkaya stated that a new constitution must be prepared which would pave the way for more democratic practices in the judiciary. Stating that capital punishment should be immediately abolished, Ozkaya said, "Modern societies must protect certain basic rights and freedoms which are sine qua non for a fully democratic regime. The government should find solutions to Turkey's problems by taking national interests and priorities into consideration. I believe such solutions which will pave the way for Turkey's full EU membership aren't difficult to find." /All Papers/

NSC SPOKESMAN MCCORMACK: "THE US WILL COOPERATE WITH WHOMEVER THE TURKISH PEOPLE ELECT AS THEIR LEADER"
Sean McCormack, spokesman for US presidential advisory group the National Security Council, yesterday told a foreign press briefing that the US was ready to cooperate with any leader the Turkish people might elect in coming polls. Stating that Washington was closely following the recent political developments in Turkey, McCormack said, "We're aware of the discussions over early elections in Turkey. Since this issue is a domestic matter for the Turkish people and politicians, I'd rather not remark any further. All I can say is that Turkey is a close ally and friend of both the US and NATO. We're ready to cooperate with whomever the Turkish nation elects as its leader." /Sabah/

TURKISH AND GREEK DIPLOMATS MEET IN ANKARA
Officials from the Turkish and Greek Foreign Ministries gathered together in Ankara yesterday as part of their regular political discussions. During the meeting, which took place amid recent Greek government operations against the November 17 terrorist group as well as Turkish concerns that DHKP-C terrorists were taking shelter in Greece, a number of regional issues were discussed. The meeting was co-chaired by Turkish Foreign Ministry Deputy Undersecretary Baki Ilkin and George Yenimatas, political director for the Greek Foreign Ministry. Sources from the Turkish side stated that such issues as the Balkans, the Middle East and the Caucasus were discussed during the meeting but that it had not touched on bilateral issues. /Cumhuriyet/

IRAQ ISSUE EXPECTED TO TOP RUSSIAN DIPLOMAT'S VISIT
Russian Deputy Foreign Minister Alexander Saltanov will arrive in Turkey on Monday as part of a round of Middle East region visits expected to focus on the Iraq issue. During his visit, Turkey and Russia, whose reservations about US intervention in Iraq are well known, will likely discuss common ways to defuse the situation peacefully through the United Nations and other political means. While Saltanov will stress Moscow's opposition to military intervention, Turkey will tell how it has briefed the US extensively on problems that intervention risks creating. /Cumhuriyet/

OZTRAK: "WE CAN'T AFFORD THE HIGH INTEREST BURDEN INDEFINITELY"
Treasury Undersecretary Faik Oztrak said yesterday that if the current high interest rates persisted, this might endanger the achievement of targets in Turkey's economic program. Speaking at a meeting hosted by monthly Global Finance in Istanbul, Oztrak remarked that the Treasury could not afford these rates indefinitely and pointed to the end of political uncertainty to bring the rates down. "We will carry on our borrowing policy in line with the demands of the markets and within the limits of the economic program," he said. "Nevertheless, the present high interest rates must decrease if we are to stay on track with this year's as well as next year's program goals." /Hurriyet/

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